...Kudler Internal Control and Risk Evaluation Internal controls are essential for a company to maintain the security of its property as well as the integrity of sensitive and confidential information. Should Kudler decide to implement and utilize industry-specific software, it would need to evaluate the internal controls and risks associated with these four systems: payroll, accounts payable, accounts receivable, and inventory. Currently, Kudler does not have effective controls in place to minimize security risks and protect its data. The following brief will evaluate the application of internal controls to new accounting system by first analyzing Kudler’s current internal controls, and then recommending steps the company can take in order to strengthen those controls. Risks in the System In order to successfully manage risks, Kudler should first assess the following types of risks: business risks, audit risks, security risks, and continuity risks. Assessing business risks would require Kudler to evaluate its current goals, the actions needed in order to achieve them, and any foreseeable obstacles that would hinder progress. Analyzing audit risks would involve Kudler ensuring the accuracy of its financial statement. Identifying threats to the security of the company’s information system makes up the security risk assessment. Finally, Kudler outline its disaster recovery and business continuity plan to complete its continuity risk assessment. Upon completing the evaluations...
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...Kudler Culture at Risk Roger Taylor MGT/521 March 24, 2011 Earl Guyton Kudler Culture at Risk Kudler Fine Foods is a gourmet grocery store chain currently located in three relatively affluent locations in southern California. Kudler has a vision of being a premiere gourmet grocery store providing savvy shoppers choices with regard to the finest meats, produce, cheese, and wines. This vision was the creation of it’s owner Kathy Kudler. To date the grocery store chain’s success is due in large part to the culture Kathy created. The Kudler culture is one that provides highly engaged and attuned customer service to it’s customers who by their status and affluence are accustomed to receiving the very finest care and advice with regard to food and beverage choices. Today Kathy is able to visit each of the three stores on a regular basis each week and insure they are providing the customer care and attention she expects the stores to provide. At this time, as a relatively small business, Kathy continues to have final say on all the major business decisions for each store including all staffing decisions and all purchasing and inventory decisions. Today with three stores the time required to make all the business decisions for each site are limiting Kathy’s availability to engage with customers and adequately assess if they are continuing to receive the kind of customer experience they have come to expect at Kudler Fine Foods. Kathy has a strategic plan for Kudler Fine Foods...
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...Internal Control and Risk Evaluation Kudler Fine Foods requested information on the controls that would be required if the company chose to follow the flowcharts prepared by Team A in Week Two. The following information will analyze the risks, identify the risks and internal control points, design internal controls, evaluate the application of internal controls, and discuss other controls. Risks With Point of Sale Cloud Computing After discussion, Team A chose to recommend a Point of Sale Cloud Computing System to Kudler Fine Foods. By design, the Cloud Computing System allows a company to determine how much capacity is needed and allows them to change the scalability as needed. Kudler Fine Foods would no longer need to be concerned with storage or having the internal resources available to maintain an in-house system. This allows a company with several locations to have access to real-time information, twenty-four hours a day and seven days a week. The Cloud Security Alliance (CSA) has outlined several risks that are associated with Cloud Computing Technology. While there are many benefits to Cloud Computing, it is important to understand the risks involved. According to “CSA Threats” (2010), “customers are also very concerned about the risks of Cloud Computing if not properly secured, and the loss of direct control over systems for which they are nonetheless accountable” (Executive Summary). The first threat mentioned is abuse. Criminals continue to work on breaking...
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...Kudler Internal Control & Risk Evaluation In order for a company to be successful and maintain its integrity, internal controls are necessary. If Kudler should decide to utilize industry-specific software, then the company would need to evaluate the internal controls and risks associated with the four systems (payroll, accounts payable, accounts receivable, and inventory). Currently the company does not have any real controls in place to reduce risks. The following information will discuss Kudler’s current internal control risks, ways in which to mitigate those risks to the systems, and evaluate the application of internal controls to the new accounting system. Risks in the System Managing risks is an ongoing process. When considering information technology, and Kudler’s new information system, there are four types of risks to evaluate: business risks, audit risks, security risks, and continuity risks. Kudler’s business risk would be whether the company achieved the goals set for the business. The audit risks would be if the auditor provided accurate a correct opinion that Kudler’s financial statements were accurate and reliable. Security risks involve the integrity of the company. Continuity risks would be if the accounting system had backup and recovery available. In the new payroll system each employee’s time should continue to be entered into the system and be approved by management. It may be a good idea to have the HR manager review each employee’s time against...
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...Internal Control and Risk Evaluation Lauren A Lewis Accounting Information Systems ACC/542 June 23,2014 Yasin Dadabhoy Internal Control and Risk Evaluation Internal controls and risk assessments are an essential part for an organization to be successful. Management at Kudler Fine Foods has reviewed the flowcharts prepared and is requesting information on controls that will be required. Risks are the negative events that may occur causing a change in an organizations productivity. Internal controls are the policies and procedures put in place to reduce unexpected occurrences related with the risks. This brief will discuss the risks of Kudler Fine Food’s current Accounting Information System evaluated by Learning Team A. It will also identify all risk and control points by incorporating the controls and risk into the flowcharts. Team A will design internal controls to ease risks to the systems, and discuss other controls, outside the system, that Kudler Fine Foods may need When evaluating Kudlers accounting information systems and the integration of the automation we found that Kudlers focus should be on payroll, accounts payable, accounts receivable, and inventory processes. Theses processes have risk involved. This brief will focus on Kudlers internal and external controls, which include polices and procedures, HR compliance/code of conduct and computer information access. Kudler must maintain a policy and procedures system documenting in detail how each procedure...
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...Shopper Program Faults Mario Samuel BSA/310 2 April 2012 Professor Shroads Abstract Kudler Fine Foods is a consumer friendly business looking for ways to reward their customers for being loyal to them. There are legal, ethical, and cost effective issues that will prevent them from going forward with the current plans they have. The excuse of not knowing about the law does not prevent a Kudler Fine Foods from breaking it. Kudler Fine Foods is a growing company trying new ways to make themselves become more successful. They came up with a plan to track purchase behavior at the individual customer level while providing high value incentives through a partnership with a loyalty points program called the frequent shopper program. The program is not focused on giving discounts to Kudler products but rather to other incentives such as first-class airline upgrades or high-end gifts. This brings up multiple issues in the areas of being legal, information security, ethical, and cost effectiveness of the program. One may say being ignorant to the law should not allow what is done right or wrong. For example, beverages left in hotels that are charged on guest credit cards if it is consumed. The guest may argue that they did not know they had to pay for the beverages, but in all actuality the sign was right there saying water is five dollars and coke is nine dollars. The sign for Kudler Fine Food is the Privacy Act of 1974 that states, "no agency shall disclose any record...
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...Control and Other Risk Internal Control and Other Risk University of Phoenix Internal Control and Other Risk Kudler Fine Food is very concern with the company internal control and risk evaluation. The company has put much time and money into ensuring Kudler is well protected. The company has hired an accountant firm to ensure the company has covered all their bases in dealing with risk an internal control. The company is fully concerns with making the most of what technology has to offer them as a company. Management needs an analysis on the risks in the system, which also identify of the risks and internal control points, which should be incorporate through the controls and risks into the flowcharts. The flowchart has been design to include and mitigate the risks associate with internal controls. An evaluation relate to the application concerning the system internal controls will be review and a full discussion of the other controls that may be need which are outside the system. Analyze Risk in the System The first risks in the system that was identified as directly related to software that would provide much more control over Kudler financial information...
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...This brief is prepared for the management of Kudler Foods to follow the recommended Accounting Information Systems recommendations. Now that we have recommended a solution design for the industry specific software, we need to set a system of internal controls and to clearly outline the risks that are inherent in these systems. To begin, internal control systems are the various methods and measures designed to safeguard assets, to check the accuracy and reliability of accounting data, to promote operational efficiency, and to encourage adherence to prescribed managerial policies. First, there we will identify the risks and internal control points by incorporating these risks into the flowcharts provided in the information systems. The risks for the payroll system are bad inputs that would lead to deficient or distorted payroll amounts (requiring input controls), improper access of the files by the wrong people (personnel controls & access controls), and loss of these critical records (backup systems for this data). The risks inherent in the AR system are in making sure the inputs to the system are reliable. There are risks in the inputs to the system, to make sure the system processes the transactions correctly and completely, and the calculations are sound and the outputs of the system are correct. Furthermore, there are risks in the controls within the database to make sure the data is stored correctly and that the proper inventory is accessed in a manner that will preserve...
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...Kudler Fine Foods IT Security Report Area of System | Threat | Potential Vulnerability | IT System | Targeted Attacks – specifically designed to penetrate a particular organization, and focus on gathering specific information. | Used to gather information with monetary value for example, customers personal information. Name, address, phone numbers, and social security numbers. | | Privacy Threats - That puts both personal data at risk and raises bigger questions about the proper use of aggregated data companies use for promotional purposes. | The internet allows users to bank, shop, and socialize online which requires users to disclose customer information putting personal data at risk | | Fake Security Certificates - cybercriminals have been able to issue fake certificates for their malware using so-called self-signed certificates, and they have also been able to successfully breach the systems of various CAs and use stolen certificates to sign their code. | Make a fake website seem like it is a legit service | | Mobile Malware – about 90% of mobile malware is targeted toward Android based devices. Android is widely used, easy to develop for, and users of Android are able to download apps from anywhere they choose. On the other hand, iOS is a closed file system, allowing the download and use of apps from just a single source, the App Store. | Customer using their mobile devices to store their loyalty card must be aware that mobile phones are also targets for...
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...Kudler Fine Foods Risk and Internal Control Evaluation Sonji A. Hart ACC 542 December 8, 2012 Irene Branum Kudler Fine Foods Risk and Internal Control Evaluation According to Hunton et al. (2004), the COSO report states the five objectives to an internal control system are (1) control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring. Upon management’s review of the flowcharts submitted to Kudler Fine Foods from Learning Team B, were requested to provide information on internal controls that are required by the new system. This brief will identify and analyze the risks in the systems, design internal controls and evaluate the application of internal controls to mitigate risks and discuss other outside controls that may be necessary. Identifying Risks and Internal Controls – Flowcharts It is important that businesses be aware that risks can arise internally as well as externally. Risk assessment helps a business to “identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs” (Hunton, Bryant, Bagranoff, 2004, pg. 243). Learning Team B created a system customized to meet the needs of Kudler Fine Foods. There are however, potential audit and security risks associated with payroll, accounts payable, accounts receivable, and inventory. A major concern with any business is fraud. According...
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...the task of preparing a flowchart for possible systems that Kudler Fine Foods could use to enhance their business. After reviewing the flowchart, our client is now requesting that we provide information on controls that will be required for this system. This business brief will analyze the risks in the system, identify all risks and internal control points by displaying them in a flowchart, design internal controls to mitigate risks to the systems, evaluate the application of internal controls to the system, and discuss other controls outside of the system that our client may need. Analyze the risks in the systems that your team analyzed. Every system that is implemented in any company “faces risks [that] come from both external and internal parts of the organization” (Bangranoff, Simkin & Strand, 2008, p. 243). The characteristics of the system that we recommended for Kudler Fine Foods does not exclude these risks. The system has a wide variety of tasks that are needed in order for it to work properly. The main risk that stands out in the outline of this system is to make sure the segregation of duties within the system are properly in place. All of the tasks within the system should be separate and assigned to different employees throughout each store. For example, the same employee that takes inventory cannot be the same employee that processes the invoices in the system for the vendors. This is an internal risk that gives the employee an opportunity to order products from...
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...Internal Control and Risk Evaluation – Kudler Fine Foods Lisa Cook University of Phoenix ACC/542 August 15, 2011 Internal Control and Risk Evaluation Internal controls and risk assessments are an integral part for a company to be successful. Management at Kudler Fine Foods has reviewed the flowcharts prepared and is requesting information on controls that will be required. Risks are none to be a negative event occurring in a company’s productivity. Internal controls are the policies and procedures put in place to reduce unforeseen occurrences associated with the risks. This brief will discuss the risks of Kudler Fine Food’s current Accounting Information System (AIS) evaluated by Team B and incorporate the controls into the flowcharts, design internal controls to mitigate risks to the systems, evaluate the application of internal controls to the systems, and discuss other controls, outside the system, that Kudler Fine Foods may need. Risks in the Systems According to Hunton, Bryant, & Bagranoff (2004), “business enterprises face a variety of risks, including business, audit, security, and continuity risks” (pg. 48). When analyzing Kudler Fine Foods current information system the team found that Kudler lacked internal controls and risk evaluations required to run their information system. Several concerns were brought up as major potential risks. The three risks focused on are those of business, security, and continuity. Several of Kudler’s risks within the system...
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...Quantitative Risk Assessment PM/584 October 2015 Deborah Reid Quantitative Risk Assessment The following paper will cover a revision to the Kudler Fine Foods newsletter with coupons for a promotional items project background clarifying the project scope, requirements, schedule, quality and constraints. This paper will also include an updated risk identification framework, qualified and quantified risk matrix, and prioritized risk register. Revised Project Background The basic project is the design of a monthly newsletter with coupons for promotional items using the current customer demographic database. The project timeline is 9 months with a budget of $75,000. The majority of the budget will be spent on securing a design agency, and printing and mailing of the newsletter. Some will be allocated to the maintenance and updating of the current database information. First Month: • As Kudler Fine Foods does not have the talent in house required to design the newsletter an external design agency will have to be utilized. This will require the publication of a Request for Proposals (RFPs) to be forwarded to design agencies. Once the RFP’s have been received a review by management and the project team will be required for the selection process, this should be accomplished within the first month of the project timeline. Second/Third Months • Once the design agency has been selected the...
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...Kudler Fine Foods relies on Accounting Information System (AIS) for its daily business operations. Due to the complexity of the business today, Kudler needs to understand the potential risks and how to mitigate them by applying internal controls to the AIS. This paper will discuss the risks and internal controls of Kudler’s AIS. The Risks to Kudler’s AIS Risk represents the possibility of a loss or harm to an organization (Raval & Fichadia, 2007, p.29). In developing effective AIS, risks should be analyzed and identified to protect the company’s assets and to promote operational efficiency. Kudler’s AIS uses four systems. They are Accounts Payable (AP), Accounts Receivable (AR), Inventory, and Payroll systems. These four systems have potential risks that may arise due to separation of duties conflict, unauthorized access, and human errors. At Kudler, the AP system is designed as an automated system. The potential risks to the system are the accuracy of the invoices’ approval and the segregation of duties conflict in adding or changing and approving vendors’ details. The sales process at Kudler involves payment by cash and credit. Even though the AR system is designed as an automated system, potential risk occurs when separation of duty conflicts exist in receiving and depositing the cash. The Inventory system at Kudler is also designed as an automated system. The potential risks are unauthorized modification of inventory level, separation...
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...Executive Summary Kudler Fine Foods was first established in 1998 with an objective strongly focused on providing its clients the opportunity to buy fresh ingredients used to make delicious cuisines. Since then, Kathy Kudler (founder) has opened two more locations to satisfy her target market’s thirst for her product(s). Although this small business expansion has increased the customer base and or revenue pursued by its owner, the induction of additional services provided has also slightly altered the projected operations plan and or business plan. Kudler Fine Food’s mission states that it will “provide its customers with the finest selected foodstuffs, wines, and related needs in an unparalleled consumer environment“(Apollo Group, 2008). In order for Kudler to meet the needs of the consumer at all times, administration has proposed a review of the companies operations and or communication plan(s) be reviewed for contingency of any unforeseen threats to daily operations. Scope To assist the company in their daily functions, Kudler Fine Foods stores information used to determine market conditions, customer demographics, individual store sales, employee demographics, payroll, administrative functions, and other human resource related information. A post review of Kudler’s fixed operations reveals the company is currently unprepared for any and all potential threats that may halt daily operations for an over-extended period. Potential threats that Kudler may face are: breach and...
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