ERP Audit Checklist: 30 Questions to Find Hidden Problems
A Practical 2026 Guide to Finding ERP Gaps in Processes, Data, Security, Integration, Reporting and Business Performance
Your ERP may be running.
Users may be logging in.
Invoices may be getting generated.
Orders may be processed.
Reports may be created.
But that doesn't necessarily mean your ERP is working efficiently.
Many businesses live with ERP problems for years because those problems become part of the daily routine.
Employees create Excel workarounds.
Managers ask for manual reports.
Finance reconciles information outside the ERP.
Sales maintains separate customer lists.
Operations uses spreadsheets for planning.
IT manages old integrations.
And management assumes:
“That's just how our ERP works.”
But sometimes the real problem isn't the ERP software.
It is the way the ERP has been configured, customized, integrated, maintained or used.
This is where an ERP audit can help.
An ERP audit is a structured review of your ERP environment, business processes, data, security, integrations, reporting, user adoption, performance and future requirements.
For organizations using Microsoft Dynamics 365, Business Central, Dynamics NAV, Dynamics 365 Finance, Supply Chain Management or related Power Platform solutions, an ERP audit can help identify hidden risks and improvement opportunities before they become expensive problems.
Microsoft's own Dynamics 365 implementation guidance emphasizes reviewing business process modeling, data migration, integration, testing, security, analytics, cutover and change management as important implementation areas.
This guide gives you 30 practical ERP audit questions to identify where your current ERP may need attention.
Quick Answer: What Is an ERP Audit?
An ERP audit is a structured assessment of an organization's ERP system and the business processes around it.
It can evaluate:
· Business processes
· ERP configuration
· Data quality
· Security
· User access
· Integrations
· Customizations
· Reporting
· Performance
· User adoption
· Automation
· Licensing
· Support
· Upgrade readiness
· Business requirements
The objective isn't simply to find technical errors.
The objective is to answer:
Is our ERP supporting the business effectively, securely and efficiently?
Why Should a Business Conduct an ERP Audit?
ERP problems often remain hidden because employees create workarounds.
For example:
ERP doesn't provide the report → Finance builds Excel report
Approval is slow → Employee sends WhatsApp message
CRM isn't connected → Sales maintains another spreadsheet
Inventory visibility is poor → Operations maintains manual stock sheet
ERP customization is difficult to maintain → IT avoids changing it
These workarounds may appear practical.
But they can create:
· Duplicate data
· Manual effort
· Reporting inconsistencies
· Security risks
· Process delays
· Higher operating costs
· Poor decision-making
An ERP audit helps identify the root cause.
The 30-Question ERP Audit Checklist
Section 1: Business Process Audit
1. Does the ERP support your current business processes?
Businesses change.
Your ERP configuration may have been designed several years ago.
Ask:
Does the current system still match how the business operates today?
Review:
· Sales
· Purchasing
· Finance
· Inventory
· Manufacturing
· Projects
· Customer service
If the answer is no, document the process gaps.
2. Are business processes documented?
Can someone clearly explain:
Lead → Quote → Order → Delivery → Invoice → Payment?
Or:
Purchase Request → Approval → PO → Receipt → Invoice → Payment?
If processes exist only in employees' knowledge, the business has operational dependency risk.
3. Are there manual workarounds?
Ask every department:
“What do you do outside the ERP?”
Look for:
· Excel
· Manual registers
· Separate databases
· Personal spreadsheets
Every major workaround should be investigated.
4. Are approval processes clearly defined?
Review:
· Purchase approvals
· Discount approvals
· Expense approvals
· Vendor approvals
· Customer credit approvals
· Journal approvals
Ask:
Who approves what, at which threshold and how is the approval recorded?
5. Are there unnecessary process steps?
ERP systems sometimes become complicated over time.
A process that originally required three steps may now require eight because of customizations and workarounds.
Map the process from beginning to end.
Then ask:
Which steps actually create business value?
Section 2: ERP Configuration Audit
6. Is the ERP configured according to current business requirements?
Review:
· Company setup
· Financial dimensions
· Number sequences
· Tax configuration
· Warehouses
· Locations
· Sales settings
· Purchasing settings
· Approval workflows
Configuration should reflect current business needs.
7. How much customization exists?
Customization isn't automatically bad.
But excessive customization can increase:
· Maintenance effort
· Upgrade complexity
· Testing requirements
· Support dependency
· Technical debt
Ask:
Which customizations are business-critical?
Which could now be replaced by standard functionality?
Microsoft's implementation guidance recommends mapping standard capabilities to business requirements to help minimize unnecessary customization.
8. Are customizations documented?
For every important customization, ask:
· Why was it created?
· Who owns it?
· What process depends on it?
· What happens if it fails?
· Is documentation available?
· Is there a testing process?
Undocumented customization is a hidden operational risk.
9. Are ERP environments properly structured?
Review:
· Development
· Test
· UAT
· Production
· Sandbox environments
Environment strategy should be planned early because changing it later can be difficult and expensive. Microsoft specifically recommends defining environment strategy around data access, security, governance and scalability.
Section 3: Data Audit
10. Is master data accurate?
Review:
· Customers
· Vendors
· Products
· Employees
· Chart of accounts
· Locations
Look for:
· Duplicates
· Missing fields
· Incorrect records
· Old records
· Inconsistent naming
Microsoft's data-management guidance emphasizes data availability, usability, integrity, security and compliance.
11. Are duplicate records affecting operations?
Examples:
ABC Industries Pvt Ltd
ABC Industries
ABC Industry Pvt. Ltd.
These could potentially represent the same customer.
Duplicate data affects:
· Reporting
· Sales
· Credit management
· Customer communication
· Analytics
12. Is historical data still useful?
Businesses often carry years of data forward.
Ask:
Do we need all historical data in the active ERP?
Evaluate:
· Data volume
· Business value
· Reporting requirements
· Compliance requirements
· Performance
· Migration requirements
Not every old record needs to remain operationally active.
13. Is data ownership defined?
Who owns:
Customer master data?
Product data?
Vendor data?
Financial data?
A strong data governance model should assign responsibility.
Microsoft recommends appointing data stewards and establishing data governance principles for quality throughout the business-process lifecycle.
Section 4: Integration Audit
14. Which systems are connected to the ERP?
Create an integration inventory.
For example:
ERP
↓
CRM
↓
E-commerce
↓
Banking
↓
Payroll
↓
Warehouse
↓
Power BI
↓
Other applications
15. Are integrations still required?
Some integrations remain active simply because nobody has reviewed them.
Ask:
Is this integration still needed?
Who owns it?
What happens if it fails?
16. Are integration failures monitored?
A successful integration architecture should have:
· Monitoring
· Error handling
· Alerts
· Logging
· Ownership
· Recovery procedures
Microsoft's integration governance guidance specifically recommends considering monitoring, auditing, notifications, security, availability and disaster recovery for integration platforms.
17. Is duplicate data being created between systems?
For example:
CRM customer
↓
ERP customer
↓
E-commerce customer
If synchronization isn't properly designed, duplicate or conflicting information can appear.
Ask:
Which system is the source of truth?
Section 5: Security Audit
18. Do users have the correct access?
Review user roles.
Ask:
Does every employee have only the access they need?
Look for:
· Excessive permissions
· Shared accounts
· Former employees
· Inactive users
· Administrator access
Microsoft recommends making security a priority from the beginning of a Dynamics 365 implementation rather than treating it as a final-stage activity.
19. Are privileged users properly controlled?
Administrator access should be carefully reviewed.
Ask:
· Who has admin access?
· Why?
· Is it still required?
· Is activity monitored?
· Are privileged roles reviewed periodically?
Business Central also provides security guidance covering authentication, access control, privileged access management, data protection and auditing administrative actions.
20. Are security roles tested?
Don't simply configure security.
Test it.
For example:
Salesperson
Should they see:
· Their customers?
· All customers?
· Financial information?
· Other salespeople's opportunities?
Test access using realistic user roles.
Section 6: Reporting and Analytics Audit
21. Does management trust ERP reports?
Ask:
“Which report does management actually trust?”
If the answer is:
“Our Excel MIS”
investigate why.
Possible reasons:
· ERP data is incomplete
· Reports are difficult to customize
· Data is delayed
· KPI definitions differ
· Users don't trust the system
22. Are KPIs clearly defined?
For example:
Revenue
Does everyone calculate revenue the same way?
Gross Margin
Does finance use the same definition as management?
Sales Pipeline
Does CRM match the sales report?
Inconsistent KPI definitions create inconsistent decisions.
23. How much manual reporting exists?
Measure:
Hours per week spent preparing reports
Then estimate:
Monthly manual reporting effort
This can reveal a significant automation opportunity.
Power BI can be considered where interactive analytics and management dashboards are required.
Section 7: User Adoption Audit
24. Are employees actually using the ERP?
Login statistics alone aren't enough.
Ask:
Which processes are completed inside the ERP?
Which are completed outside it?
For example:
Salesperson:
CRM for opportunity
but:
Excel for forecast
That is a process-adoption gap.
25. Do users understand the correct process?
Sometimes users don't use a feature because:
· Training was incomplete
· Process is confusing
· System is difficult
· Management doesn't enforce it
· Old habits remain
Training and change management are therefore part of ERP performance—not separate from it.
Section 8: Performance and Operational Audit
26. Are users experiencing performance problems?
Ask:
· Which screens are slow?
· Which reports take too long?
· When does performance decline?
· Are integrations delayed?
· Are batch jobs failing?
Performance problems should be measured rather than assumed.
27. Are critical processes dependent on individuals?
Ask:
“If this employee leaves tomorrow, can someone else operate the process?”
If only one person understands:
· Financial closing
· ERP administration
· Data migration
· Integration
· Reporting
· Custom processes
there is a knowledge concentration risk.
Document critical processes.
Section 9: Cost and Support Audit
28. Are you paying for unused licenses or services?
Review:
· Active users
· Inactive users
· License types
· Additional applications
· Third-party solutions
· Support contracts
· Custom development
The objective isn't simply to reduce cost.
It's to understand whether technology spending matches actual business requirements.
29. Is your ERP support model clearly defined?
Ask:
Who handles incidents?
Who handles enhancements?
Who handles integrations?
Who handles security?
Who handles upgrades?
What is the escalation process?
A clear support model reduces operational uncertainty.
Section 10: Future-Readiness Audit
30. Can your ERP support the next 3–5 years of business growth?
This is perhaps the most important question.
Your ERP may work today.
But what happens if:
· Users double?
· Locations increase?
· New products launch?
· New legal entities are added?
· International operations begin?
· E-commerce expands?
· Manufacturing volume increases?
· CRM requirements become more complex?
· AI and automation become more important?
The audit should not only evaluate:
“Is the ERP working today?”
It should also evaluate:
“Can the ERP support where the business is going?”
ERP Audit Scoring Framework
After answering the 30 questions, score each area.
Area | Score |
Business Processes | /10 |
Configuration | /10 |
Data | /10 |
Integration | /10 |
Security | /10 |
Reporting | /10 |
User Adoption | /10 |
Performance | /10 |
Cost & Support | /10 |
Future Readiness | /10 |
You can classify findings internally as:
Critical
Immediate business, security or compliance risk.
High
Significant operational or financial impact.
Medium
Efficiency or usability issue.
Low
Optimization opportunity.
The purpose of scoring is prioritization—not creating an arbitrary “ERP health score.”
The Hidden Problems an ERP Audit Can Reveal
A good ERP audit may uncover issues such as:
Excel dependency
Duplicate customer data
Unused licenses
Excessive customization
Weak user permissions
Unmonitored integrations
Manual reporting
Poor master data
Undefined KPIs
Outdated processes
Single-person dependencies
Insufficient testing
Missing documentation
Upgrade risks
These problems may not appear during normal day-to-day ERP usage.
What Should CFOs Look For?
CFOs should focus on:
· Financial data accuracy
· Reporting reliability
· Approval controls
· User access
· Receivables
· Payables
· Manual reconciliation
· Reporting effort
· ERP operating costs
· Audit and compliance considerations
The question is:
“Can I trust the financial information coming from the ERP?”
What Should CIOs and IT Heads Look For?
IT leaders should focus on:
· Architecture
· Security
· Integrations
· Customizations
· Environment strategy
· Data governance
· Monitoring
· Disaster recovery
· Technical debt
· Upgrade readiness
The question is:
“Can we maintain and evolve this ERP safely?”
What Should COOs Look For?
COOs should focus on:
· Process efficiency
· Inventory
· Purchasing
· Production
· Order fulfillment
· Approvals
· Operational bottlenecks
· Cross-department workflows
The question is:
“Where is the business losing operational efficiency?”
What Should CEOs and Founders Look For?
Leadership should focus on:
· Business visibility
· Scalability
· Cost
· Risk
· Customer experience
· Decision-making
· Growth readiness
The question is:
“Is our ERP helping the business grow—or creating limitations?”
What Happens After an ERP Audit?
The audit shouldn't end with a PDF full of observations.
Create a prioritized roadmap.
Phase 1 — Critical Fixes
Security issuesData problemsBroken integrationsCritical process gaps
Phase 2 — Efficiency
AutomationReportingWorkflow improvementsUser adoption
Phase 3 — Optimization
Power BIPower AutomateCRM integrationAdvanced analytics
Phase 4 — Transformation
ERP modernizationMigrationReimplementationArchitecture redesign
This creates a practical path from audit → action → improvement.
ERP Audit vs ERP Replacement
An ERP audit doesn't automatically mean:
“Replace your ERP.”
The audit may reveal that the existing system is fundamentally suitable but poorly configured.
Possible outcomes include:
Optimize
Improve the existing ERP.
Integrate
Connect disconnected systems.
Automate
Remove repetitive manual work.
Upgrade
Move to a supported/current platform.
Migrate
Move from legacy ERP to a modern solution.
Replace
Consider a new ERP only when the current platform cannot reasonably support business requirements.
This distinction is important because replacing an ERP is a major business decision.
ERP Audit for Dynamics NAV / Business Central
For businesses running older Dynamics NAV or Business Central environments, an audit can examine:
· Current version
· Database
· Customizations
· Extensions
· Integrations
· Data quality
· User roles
· Reports
· Third-party applications
· Cloud readiness
· Migration requirements
Microsoft's current Business Central cloud-migration guidance recommends assessing the current state—including version, database size, growth and number of companies—before planning migration.
This makes an ERP audit a useful first step before deciding between:
Optimize → Upgrade → Migrate → Reimplement
ERP Audit for Dynamics 365
For Dynamics 365 environments, the audit can cover:
Business Processes
Data
Security
Integrations
Environment Strategy
Testing
Reporting
Customization
User Adoption
Governance
Microsoft's implementation governance guidance specifically highlights testing, data migration and integration as areas that require structured governance and business ownership.
How JetBriks Can Help
JetBriks can help businesses assess their ERP environment from both business and technology perspectives.
An ERP audit can cover:
· Business process review
· ERP configuration assessment
· Data quality assessment
· Security and user access review
· Integration assessment
· Reporting and KPI review
· Customization assessment
· Automation opportunities
· User adoption
· Support model
· Upgrade/migration readiness
· Future-state roadmap
The objective is not to recommend change for the sake of change.
The objective is to identify:
What is working?
What is creating risk?
What is creating unnecessary cost?
What should be optimized?
What should be automated?
What needs to change first?
Frequently Asked Questions
What is an ERP audit?
An ERP audit is a structured assessment of an organization's ERP system, business processes, data, security, integrations, reporting, users, performance, costs and future requirements.
Why should a company conduct an ERP audit?
An ERP audit can identify hidden process inefficiencies, data-quality issues, security risks, excessive customization, integration problems, reporting gaps and opportunities for automation or modernization.
How often should an ERP be audited?
The frequency depends on the organization's size, ERP complexity, regulatory environment and rate of change. A review can be especially useful before major upgrades, migrations, acquisitions, expansions or significant process changes.
What does an ERP audit check?
A comprehensive audit can check business processes, configuration, data, integrations, security, reporting, user adoption, performance, costs, support and future readiness.
Can an ERP audit determine whether we need a new ERP?
It can help inform that decision by identifying whether problems can be solved through optimization, configuration, integration, automation, upgrade or migration. A replacement decision should be based on documented business requirements and total cost/risk.
Should we audit ERP security?
Yes. Security should be reviewed as part of an ERP audit. Microsoft recommends treating security as a priority from the beginning of Dynamics 365 projects and considering identity, access, privacy and compliance requirements early.
Should ERP data quality be audited?
Yes. Poor master data can affect reporting, integrations, operations and decision-making. Microsoft recommends governance around data quality, integrity, security and stewardship.
Should integrations be included in an ERP audit?
Yes. Integrations should be reviewed for business purpose, architecture, security, reliability, monitoring, error handling and ownership.
Can an ERP audit reduce ERP costs?
An audit can identify areas such as unused licenses, unnecessary customizations, redundant applications, manual reporting and inefficient processes. The actual savings depend on the findings and subsequent changes.
Should we conduct an ERP audit before migrating to Business Central?
It can be valuable. Reviewing the current environment, customizations, data, integrations, users and processes before migration can help define scope and identify risks. Microsoft recommends assessing the current state before planning Business Central cloud migration.
Final Takeaway
Your ERP may be running.
But that doesn't mean it is optimized.
The most expensive ERP problems are often the ones that have become normal.
“We always use Excel for that.”
“Only Rahul knows how this works.”
“That integration sometimes fails.”
“Management needs a separate report.”
“We can't change that because it's customized.”
“The data isn't completely reliable.”
These aren't just inconveniences.
They can be signs of deeper ERP process, data, security, integration or governance problems.
A structured ERP audit helps turn those hidden problems into visible, prioritized actions.
Start with these 30 questions.
Then classify each finding:
Fix → Optimize → Automate → Integrate → Upgrade → Migrate → Replace
The right answer isn't always a new ERP.
Sometimes the best improvement comes from making better use of the ERP you already have.
Ready for an ERP Audit?
JetBriks can help you review your current ERP environment and identify hidden problems across:
Processes + Data + Security + Integrations + Reporting + Customization + Automation + User Adoption + Future Readiness
Request an ERP Audit & Health Assessment
We'll help you identify:
· Critical risks
· Process gaps
· Data problems
· Integration issues
· Reporting gaps
· Automation opportunities
· Upgrade/migration considerations
· Priority improvement roadmap
Don't replace your ERP before understanding what is actually wrong with it.
