Which of the following should an IS auditor recommend be performed FIRST when evaluating potential enterprise resource planning (ERP) implementation vendors?
Which of the following should an IS auditor recommend be performed FIRST when evaluating potential enterprise resource planning (ERP) implementation vendors?
In evaluating potential ERP implementation vendors, the first step should be to develop the vendor response scorecard. This ensures that there is a structured, consistent set of criteria against which all vendors can be objectively assessed. The scorecard will typically include various factors such as past implementations, financial history, and client references, but it's essential to establish the evaluation framework before collecting and comparing this information.
D. Develop the vendor response scorecard Before starting the evaluation process, it’s important to establish the criteria that will be used to assess the vendors. This is typically done through a vendor response scorecard, which outlines the key factors that are important to the organization.
As I understand it, the development of a vendor scorecard typically includes the results from options A., B. and C. as a basis - whereby the order in which these bases are developed is irrelevant, as all the data for the scorecard must be available. So somehow only D. itself makes sense as an answer.
Checking the vendors' client references allows the auditor to gather insights from organizations that have previously worked with the vendors. This can provide valuable information about the vendors' performance, reliability, and the success of their implementations.
c is right
Understanding the financial health of a vendor helps mitigate risks associated with potential disruptions, bankruptcy, or financial instability that could impact the success of the ERP implementation.
Developing the vendor response scorecard (option D) is an important step in the evaluation process, but it usually comes after gathering information about the vendors. Checking client references (option C) is often considered as the initial step because it provides insights into the vendors' actual performance and how satisfied their clients are with their services. This information can be valuable in shaping the vendor response scorecard and informing further assessments.