The Role of Intelligent ERP Systems in Preventing Corporate Fraud and Strengthening Financial Governance

Abstract

In an era marked by increasing corporate fraud and financial misconduct, organizations are under mounting pressure to adopt advanced technological solutions that enhance transparency and accountability. This study investigates the role of intelligent Enterprise Resource Planning (ERP) systems, integrated with artificial intelligence (AI), machine learning (ML), and real-time analytics, in preventing corporate fraud and strengthening financial governance. Drawing on both theoretical and empirical insights, the research explores how intelligent ERP systems contribute to early fraud detection, internal control enhancement, and compliance with governance standards. Using a mixed-method approach that combines a review of recent literature with data obtained from finance professionals and ERP users across various industries, the study identifies critical features such as automated anomaly detection, predictive risk modeling, and continuous auditing mechanisms that significantly reduce opportunities for fraudulent activities. Findings indicate that organizations leveraging intelligent ERP systems report improved financial integrity, better decision-making, and stronger adherence to governance policies. The study concludes that intelligent ERP systems not only serve as technological tools but also as strategic enablers of ethical and sustainable financial management. Practical and policy recommendations are provided to guide organizations and regulators in leveraging intelligent ERP capabilities for enhanced corporate governance and fraud mitigation.