...System Integrity and Validation ACC 542 August 12, 2013 Milan Havel Abstract Kudler seeks to improve their audit process by allowing changes implemented to their audit documentation process. It is important to implement changes reflected by computer assisted auditing techniques (CAATs). These changes will offer a variety of benefits to Kudler as well as the auditor. The use of CAATs will allow auditors to use the software for improved analysis and application of security. Auditors will also be able to extract and analyze data to foresee any potential threats, trends, fraud issues, or foresee expectations. The use of validation tools will also allow Kudler greater success in their audit. Using test decks, integrated test facilities (ITF), and parallel simulations will allow auditors to verify and test data quickly and effectively. The functions of this software will improve greatly not only the speed of the audit, but also accuracy as well. Auditors will be able to analyze a vast amount of data and verify balances, again information, and verify any duplicate information. Kudler should choose a custom audit software suitable to their organizational needs. More specifically, they should focus on accuracy, reliability, and compliance as their key goals for the audit. The distinct audit software should be in connection with their AIS and will offer numerous benefits. Kudler and the auditor will be able to manage current or past transactions, history, reporting...
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...System Integrity and Validation Vincent A. Davis, Jr. ACC/542 October 21, 2013 Irene Branum Preface In the last few weeks the accounting firm, Team D has looked into characteristics of Kudler Fine Foods and provided recommendations to update and replace existing components of the IT system. These recommendations made can yield in the company’s increased productivity, profitability, and remove potential threats. Team D determined that industry specific software is useful in comparison to customized software. Four main modules such as payroll, account payable, accounts receivable, and inventory were developed as well as enhancement of each flowchart based on the appropriate system. Team D examined the database completeness at Kudler’s intranet and developed a pivot table; therefore, making the decision-making process easy. External and internal risks were analyzed and internal control points were developed by incorporating both risks and controls into a flowchart. Team D also showed why findings and recommendations are more useful to the company in comparison to SAS70 and SAS94 audits. The team identified events that will lessen the dependence on auditing through computer and showed a brief description how the audit should be conducted. System Integrity and Validation Kudler Finer Foods has looked for recommendations regarding the company, to include computer information system, automated process of an accounting information system, data table analysis, internal control...
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...System Integrity and Validation and Summary of Recommendations Jessica Noble ACC 542 March 23, 2015 Milan Havel System Integrity and Validation Since the proposal of the new software at Kudler Fine Foods, the system integrity and the use of computer assisted auditing techniques (CAATs) will need to be discussed. This brief will follow three topics (1) how CAATs is used to validate data and system integrity, (2) explain the functions of audit productivity software, and (3) provide details on how audit productivity software may be used in the system. CAATs is used to Validate Data and System Integrity Auditors use computer assisted auditing techniques (CAAT) for several reasons. CAATs not only help auditors with software but they can use data for analyzing, look for patterns, and identify fraud (Hunton, Bryant, & Bagranoff, 2004). By using CAATs it will increase efficiency for both internal and external audits. By doing this it will allow auditors to look at all financial information. CAATs are valuable to auditors when testing or validating computer applications because they can determine if codes have been accessed illegally. If audits were conducted manually then an auditor would not be able to examine the data. To verify system integrity, auditors can validate applications through test data, an integrated test facility, or through a parallel simulation. Test data is described as the use of false data entered into the systems. “This...
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...Running Head: System Integrity and Validation SYSTEM INTEGRITY AND VALIDATION Kudler Fine Foods (KFF) DEBORAH OKAI ACC 542 – ACCOUNTING INFORMATION SYSTEMS December 16, 2013 DAVID PHILLIPS Running Head: System Integration and Validation BRIEF This brief will focus on computer assisted audit tools and techniques (CAATTs) for the audit process and documentation of Kudler Fine Foods (KFF). The purpose of the CAATTs is to facilitate and quicken the audit process for KFF’s accounts receivable, payable, inventory, and payroll systems. Preface KFF has implemented internal controls on its accounting and information systems. It has also targeted four areas of the business system for audit purposes – accounts receivable (AR), accounts payable (AP), inventory, and payroll. Considering the fact that KFF’s business is run on computers, it would be ideal to run the audit process using computer assisted audit tools and techniques (CAATTs). This would increase the efficiency of the audit process. In today’s world of advancing technology and corporate accounting scandals, I think the best technique for auditing KFF would be in the form of continuous auditing. An example is the embedded audit module. This is a procedure where the audit data is collected at the same time as when the client is performing its business operations. The audit module will give the auditor online access to KFF’s data whenever needed....
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...Kudler Fine Foods is a company that uses a significant amount of electronic data and information to flow through their system on a daily basis. The company relies on this data to be accurate and trustworthy. Considering the dependency and importance of the electronic data flowing through the system in such a high volume, they would benefit from computer assisted audit techniques (CAATs). A CAATs audit is focused on testing the computer systems for data integrity and security of the company’s information data processing. CAATs provide a 10 step process made available to the auditor for use as guidelines in conducting an efficient audit. The guidelines will reduce the time to complete the audit, save money and ensure a high degree of confidence in the audit results. The CAATs audit will provide the owner of Kudler Fine Foods with assurance that the systems are operating with accuracy and the data is secure. To initiate the audit procedure, the auditor will first collaborate with the owner of Kudler Fine Foods to define the intents and desired end results of the audit. The auditor will review the computer systems, processes, types of data and process controls with Kathy Kudler to ensure that she thoroughly understands the system. Through this collaboration, the auditor will determine the best strategies for assessing the risks associated with the system and current processes. He or she will also determine the optimal strategy for collecting and testing data. Once...
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...System Integrity and Validation - Kudler Fine Foods Theresa Gibbs Acc/542 October 29, 2012 Yasin Dadabhoy System Integrity and Validation - Kudler Fine Foods Over the past few weeks the team has analyzed Kudler’s information systems, recommended industry-specific software, analyzed its inventory data tables, and internal controls and risks for an audit proposal. After analyzing the necessary components the team recommends that an SAS 94 audit is appropriate for Kudler. To conduct the audit the auditor will use computer assisted audit tools and techniques (CAATTs) or in Kudler’s case computer assisted audit techniques (CAATs). The following brief is an explanation of how CAATs is used to validate data and the system integrity, and explain audit productivity software. CAATs CAAT is techniques that increase the auditor’s productivity and effectiveness during the audit function. CAATTs uses tools, such as software to increase the auditor’s productivity and extract data, and analyze the data in addition to the techniques. The techniques are used to validate application integrity and verify data integrity of Kudler’s information systems. “These techniques include generating test decks of data, writing and embedding automated audit modules, and performing digital analysis and linear regression on a client’s data” (Hunton, 2004, p. 179). CAAT assists the auditor in collecting sufficient, reliable, relevant, and useful evidence that supports the planned audit objects. The...
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...System Integrity and Validation ACC/542 September 3, 2012 System Integrity and Validation Kudler Fine Foods has three different locations that carry domestic and imported foods that are in five different departments. Kudler Fine Food management decided to have an accounting firm come in and look at the computer system that they are using. Kudler Fine Food is looking to successfully improve the system for possible expansion in the local area or in different states. The accounting firm has given Kudler Fine Foods six weeks to let them know what the strengths, weaknesses, and what improvements need to be done. The accounting firm took the first week to look at the type of system that Kudler Fine Foods have and how to make improvements. What the accounting firm discovered is that Kudler Fine Foods has installed the comprehensive modular Retail Management System which is a point-of-sale that may or may not have a web-based program. During this time the accounting firm discussed the improvements to the module to reduce the manual transactions and make the system more effective. The accounting firm also discussed the possible threats and ways that the threats can be prevented. The next step that needed to be discussed is the type of software for Kudler Fine Foods. The accounting firm made a suggestion of industry-customizable financial software that would replace the current processes. Once the accounting firm decided that the industry-customizable financial software would benefit...
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...• System Integrity/Validation and Final Project Summary o Project Summary o Over the past six weeks, our firm has analyzed the accounting information systems of Kudler Fine Foods. We have discussed their current computer system and evaluated the possibility of threats to it and recommend integrated software solutions. The T3 line at Kudler is clearly more data transmission than is necessary for the company, so it was recommended they switch to T1 dedicated line to reduce costs. Due to the importance of inventory control, we showed management how to take their current inventory data tables and construct pivot tables to improve decision making on inventory. Internal controls were reviewed on payroll, accounts payable, accounts receivable, and inventory processes to ensure the accuracy and validity of data. The review determined that if Kudler does not implement the recommended internal controls system suggested, the business could be under serious threats. Information Technology (IT) auditing is another important improvement that Kudlers should make since our analysis showed that there are risks and vulnerabilities in the AIS process. Our final recommendation will be in the way that the audit process is improved by using computer assisted auditing techniques. This will complete the firm’s analysis and recommendations for Kudler Fine Foods. o Our firm last week analyzed and recommended different types of Information Technology (IT) audits that Kudler Fine...
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...Kudler Fine Foods IT Security Report Kudler Fine Foods is an upscale specialty food store with the very best domestic and imported fare at every location. In keeping with their motto, “Shopping the World for The Finest Food”, Kudler Fine Foods shops the world in order to provides the very best Baked and pastry products, fresh meat and seafood, fresh produce, cheese and specialty dairy products, wines, and condiments and packaged foods. Kudler Fine Foods brings those food items back to their loyal customers in the San Diego metropolitan are. Kudler Fine Foods has stores in Del Mar, La Jolla, and Encinitas. Their mission is to offer their customers a delightful and pleasing shopping experience by employing experienced, helpful, and knowledgably staff, coupled with their selection of fine foods. Background Customer rewards programs and the like have become commonplace in many small and large retail market places. Kudler Fine Foods understands the benefits these programs offer. Customer rewards programs are electronic records management (ERM) systems that collect and store customer sales transaction information in databases from which reports can be queried. Kudler Fine Foods plans to develop the RMS, but needs help from Learning Team “A” to manage security concerns during the system development life cycle (SDLC) in order to safeguard data stored as customer information within the newly implemented system as prescribed by the Federal Trade Commission (FTC). The FTC is charged...
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...SYSTEM INTEGRITY AND VALIDATION ACC542 PREFACE Abstract Recommendations were made to Kudler Fine Foods (KFF) to institute changes that would assist with the audit and with management decisions by having information more readily available to all users. There were recommendations to the audit plan and the documentation and audit processing. KFF is going to implement proposed computer assisted auditing techniques (CAAT). CAAT will also serve as a validation agent for the reliability of the data. Recommendations The recommendations to KFF include industry specific software to improve the tracking of the inventory to help reduce spoilage and better rotation of products. It also reviewed and tied the accounts payable and receivable systems as well as payroll to the inventory system. The recommended system tied inventory into the accounts payable and receivable systems already being used. IT audits were reviewed and evaluated to assist with the design of the software and system. After reviewing the accounting information systems for Kudler Fine Foods (KFF) recommendations have been made to update and replace certain aspects of the information technology (IT) system to make the company more productive. From the review and research, it was recommended that the most appropriate audit was the findings and recommendation audit. Audits are required of most businesses and are time consuming for all involved. It can be nearly impossible for companies to conduct these...
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...Advanced Web Development/WEB 407 Introduction Kudler Fine Foods is a specialty food store offering imported and domestic fare including baked goods, meats & seafood, produce, cheese & dairy, and wine. With three locations in the San Diego metropolitan area (La Jolla, Del Mar and Encinitas), Kudler’s mission is to provide their customers with, “…the finest in selected foodstuffs, wines, and related needs in an unparalleled consumer environment” (Apollo Group Inc. 2009). In an effort to increase customer convenience and business revenue, Kudler Fine Foods wants to sell their products on the internet. By adding both item inventory and online ordering pages to their current site, Kudler Fine Foods can accomplish this goal. There are, however, additional systems necessary on the back-end to make this system possible. According to TheConsumerCollective website (2010), “E-commerce spending continues to outpace analyst’s predictions… spending will reach $259 billion in 2014, and $278.8 billion by 2015” (Suetos, 2010). Over the past few years, customer confidence with online shopping has increased significantly. Customers feel more at ease with purchasing their products from online retailers than they did just years ago. This proposal will demonstrate the major components necessary for Kudler Fine Foods to begin offering their products online. It will discuss the database design, how the scripting language PHP will be set up to provide a “shopping cart” for ease...
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...System Integrity and Validation ACC/542 Accounting Information Systems August 11, 2014 Irene Branum Preface Kudler Fine Foods began operations in 1998, by Kathy Kudler; the company has grown from one store to three and aspirations to add more locations in the near future. Our company was hired to analyze Kudler’s future accounting technology needs. We recommended a system to automate the accounting functions of accounts payable, accounts receivable, inventory, and payroll. We concluded that upgrading its accounting information system with retail-specific software instead of custom written software would be best for Kudler Foods. We have assessed the design basics of the data tables from an accounting perspective; recommend improvement to the data tables, and clarified how the information in the pivot table advanced decision-making for management The pivot table made from the information extracted from Kudlers inventory report for year-end will improve the decision-making process of inventory to be purchased by store location and by product type. We have analyzed the risk associated with the Accounting Information System in the areas of accounts payable, accounts receivable, inventory, and payroll, identified all risks and internal control points, incorporated the controls and risks into flowcharts, designed internal controls to mitigate risks to the systems, evaluated the application of internal controls to the systems, and discussed other controls...
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...ACC/542 Version 3 Accounting Information Systems | Copyright © 2012, 2009, 2007 by University of Phoenix. All rights reserved. Course Description In this course, students examine the fundamentals of accounting systems design. Topics include business information systems, business processes and data flows, database concepts and tools, internal control and risks, auditing the information system, and using the information system to perform audit functions. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Bagranoff, N. A., Simkin, M. G., & Strand Norman, C. (2008). Core concepts of accounting information systems (10th ed.). New York, NY: Wiley. Hunton, J. E., Bryant, S. M., & Bagranoff, N. A. (2004). Core concepts of information technology auditing. Hoboken, NJ: Wiley. O’Brien, J. A. & Marakas, G. M. (2008). Management information systems (8th ed.). Boston, MA: McGraw-Hill. ...
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...System Integrity and Validation With the recent implementation of automated software at Kudler Fine Foods, there is the need to address system integrity and the use of computer assisted auditing techniques (CAATs). This brief will examine the following: how CAAT is used to validate data and system integrity within the system, explain the functions of audit productivity software, and explanation of how audit productivity software might be used in the system designed. How CAAT is used to validate data and system integrity Auditors prefer to use computer assisted auditing techniques (CAATs) for many reasons. They enable auditors to use software applications, extract data for analyzing, look for trends within the data, and identify any potential areas for fraud detect fraudulent data. CAATs are valuable tools for auditors to test and validate computer applications and they can determine whether or not the source code has been compromised. The implementation of CAATs will increase efficiency and the effectiveness of both internal and external audits allowing auditors to analyze all of the financial data, a feat which would not be possible if the audit were conducted manually. SAS 94, The Effect of Information Technology on the Auditor's Consideration of Internal Control in a Financial Statement Audit, provides guidance to auditors regarding the need for the auditor to address internal controls activities during the course of an IT (Cerullo, 2003). Auditors must have...
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... | | |Accounting Information Systems | Copyright © 2009, 2007 by University of Phoenix. All rights reserved. Course Description In this course, students examine the fundamentals of accounting systems design. Topics include business information systems, business processes and data flows, database concepts and tools, internal control and risks, auditing the information system, and using the information system to perform audit functions. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Bagranoff, N. A., Simkin, M. G., & Strand Norman, C. (2008). Core concepts of accounting information systems (10th ed.). New York, NY: Wiley. Hunton, J. E., Bryant, S. M., & Bagranoff, N. A. (2004). Core concepts of information...
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