...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 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 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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...System Integrity and Validation Justin A. Miller ACC 542 July 9, 2012 Yasin Dadabhoy Introduction Computers are an essential tool for a lot of jobs. Auditors rely on computer technology to execute many job roles, use the benefits of software tools, and use methods to become more well-organized and successful. Computer-assisted audit tools, known as CAATs, and audit productivity tools are two types of software tools. CAATs assist the auditors with the evaluation of application controls. CAATs also choose and examine data for significant audit evaluations. Audit productivity tools assist auditors in reducing the number of valuable time spent on administrative duties by computerizing the audit role and incorporating information assembled from the audit process. This brief will describe how CAAT will be used to validate data and system integrity within the system, explain the functions of audit productivity software, and explain how audit productivity software might be used in the systems designed. Validating Data and System Integrity CAAT consists of the usage of software, applications, extracted and analyzed data, trends within data, identifying with the expectations and detention of potential fraud within data (Gray, et. al., 1989, Pag.109). CAAT makes available information that allows certain aspects to simply be acquired. With the utilization of CAAT, the audit records and practices can be improved with excellence and swiftness. The information systems auditor...
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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 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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...System Integrity & Validation Kimberly Miller ACC 542 February 27, 2012 Melissa Frey Preface Kudler Fine Foods (Kudler) is an upscale specialty food store. They have had remarkable success since their first store opened in 1998, opening a second store in 2000 and a third in 2003. Kudler’s success is dependent on their business model as well as an effective accounting information system (AIS). The current system is strong but could be enhanced to build productivity and profitability. Over the course of the last five weeks the following recommendations have been made to Kudler’s management team to make improvements to their existing system. Implementation of industry-specific software to improve the current AR, AP, inventory and payroll processes as well as developing new processes for sales and general ledger functions. The value-added and automation of the processes improves accuracy, eliminates double entry and allows for communication between locations. Refine the existing database with the use of flowcharts and ER diagrams to understand the flow of data and move away from broad spreadsheet reports and instead use pivot tables which will provide a summary of data useful for decision-making. Maintain, review, update, and test, policies and procedures, by means of developing good internal controls and auditing them regularly. The following brief will indicate how Kudler will also benefit from audit software and computer assisted auditing techniques (CAATs)...
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...Over the past several weeks I have had the opportunity to study Kudler Fine Foods operations. This has included their financials, inventory, payroll, and human resources. The attached brief explores audit productivity software used by Kudler’s audit firm and how it can help Kudler improve its operation and plans for expansion. Computer Assisted Auditing Techniques Computer Assisted Audit Techniques (CAATs) are computer base tools that an auditor uses to carry out various automated tests to evaluate the IT system or data. CATTs are very useful when the company has a significant volume of audit data in an electronic format (IT Audit Manual, 2011). Kudler Fine Foods has an independent auditor review their books every year. Among the computer assisted auditing techniques the auditors could use to validate data and system integrity in Kudler’s system are: • Electronic working papers – are used to support the audit opinion by demonstrating that the auditor has complied with set standards across all jobs, and the documents contain relevant information material to the audit (Quizlet, 2011). An advantage to using electronic work papers is that they automatically adjust other working papers when a related working paper is changed. They automate the audit process increasing the auditor’s efficiency. When the audit is complete, the auditor can automatically produce Generally Accepted Accounting Principles (GAAP) financial statements (Core Concepts of Information Technology Auditing...
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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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...1. Define validation and list FOUR (4) types of validity checks. Validation is a guaranteeing that a program operates on clean, correct and useful data by comparing the data with a set of rules or values to find out if the data is correct with the system. It uses routines, often called "validation rules”, "validation constraints" or " validity check ", which cross check for correctness, meaningfulness, and security of data that is being input. Four types of validity checks are numeric check, range check, consistency check and completeness check. 2. List weaknesses of file processing system. Some of the weaknesses of file processing system are that each department has its own set of files. It also has been used for many years. File processing system also leads to data redundancy which means same information is duplicated in several files. It also isolates data as data are scattered in various files, and the files may be in different format. Besides that, integrity problems also exist where the data values may need to satisfy some integrity constraints. This has to be handled through program code in file processing systems but in database the integrity constraints can be declared along with definition itself. There also exist data inconsistency....
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...Case Study: Database Development ALEXANDRA DESINORD PROFESSOR OSAMA MORAD CIS 515- STRAT PLAN FOR DBASE SYSTEMS Week 7 Assignment February 29, 2016 The more companies base their large elements of their business strategy around data, the need for IT team and executives with deep understanding of data and analytics is growing rapidly. Data changes all of the time. That is why it is essential that companies should try to stay up to par with the ever changing technology so that they can ensure that the system can withstand anything that comes about. Down below I will discuss briefly the various aspects of the SLDC and the tasks that can be completed to help solve certain common problems that exist from within. Customer data management is not high on many organizations' lists of priorities until it has to be. The term used in systems engineering, information systems and software engineering to describe a process for planning, creating, testing, and deploying an information system is called Systems development life cycle (SDLC). This term is also referred to as the application development life-cycle, which is a term used in systems engineering, information systems and software engineering to describe a process for planning, creating, testing, and deploying an information system. The task of optimizing the software development process has faced many obstacles. The main obstacle is a lack of accurate and complete data on the development process. The use of the Personal...
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...Case Study TEVA Strengthens Security for Software Assets with MKS Integrity “One of the main measures for success in the implementation of the MKS Integrity Suite was the reduction in the amount of paper and forms that get manually pushed from person to person. By simply automating service request forms and routing them via electronic workflows we have become much more effective, and dramatically reduced our time spent managing projects.” Tom Loane, Chief Information Officer , TEVA Pharmaceuticals Company Overview TEVA USA is a wholly-owned subsidiary of TEVA Pharmaceutical Industries Ltd., Israel’s largest pharmaceutical manufacturer operating globally in 30 countries on 5 continents. TEVA is among the top 20 pharmaceutical companies and the largest generic pharmaceutical companies in the world. The company has approximately 14,000 employees worldwide with production facilities in Israel, North America, Europe and Mexico. TEVA USA has an aggressive Research & Development effort and one of the best overall ANDA approval records in the industry. The company’s mission is to play a leading role in the transformation of the U.S. healthcare system through its preeminence in the development, manufacturing and marketing of pharmaceuticals. The Challenge As a pharmaceutical company operating in the U.S., TEVA must comply with Food and Drug Administration (FDA) regulations. The FDA requires stringent application development and change control practices surrounding software...
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...controls –Input controls –Processing controls –Output controls •Testing computer application controls –Black box approach –White box approach •Computer aided audit tools and techniques for testing controls Application Controls •Programmed procedures designed to deal with potential exposures that threaten specific applications, such as payroll, purchases, and cash disbursements systems. •Three categories: –Input controls –Processing controls –Output controls Input Controls •Designed to ensure that transactions are valid, accurate, and complete. •Broad classes: –Source document controls –Data coding controls –Batch controls –Validation controls –Input error correction –Generalized data input systems Source document controls •Techniques to prevent source document fraud (for example, an individual with access to purchase orders and receiving reports could fabricate a purchase transaction to a non-existent supplier) –Use pre-numbered source documents –Use source documents in sequence –Periodically audit source documents Data Coding Controls •Checks on integrity of data codes used in processing. •A customer’s account number, an inventory item number, and a chart of accounts number are all examples of data codes. Data Coding Controls •Three types of errors that can corrupt data codes and cause processing errors: –Transcription errors –Single transposition errors –Multiple transposition errors Transcription Errors •Addition errors: e.g...
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...CSS150-1302B-01: Introduction to Computer Security Week 1 Individual Project Brian Frank Colorado Technical University Online 5/27/2013 Name and describe the seven different categories of the Expanded CIA triangle. The seven expanded categories to the Expanded CIA Triad include Confidentiality, Integrity, Availability, Accuracy, Authenticity, Utility, and Possession (Northeastern University, n.d.). * Confidentiality is only allowing access of data to authorized personnel (Kim and Solomon, 2012). * Integrity is the accuracy and validity of data, only authorized persons can edit information (Kim and Solomon, 2012). * Availability is the amount of time authorized users can use an application, data, and/or a system (Kim and Solomon, 2012). * Accuracy is data free from errors or mistakes and has the value that the end user expects (Northeastern University, n.d.) * Authenticity is the original state of data and not a reproduction (Northeastern University, n.d.). * Utility is the state of having value or quality for some purpose (Northeastern University, n.d.). * Possession is the control state of ownership of an item (Northeastern University, n.d.). Provide a summary of the security goal of each category of the Expanded CIA triangle. * Confidentiality keeps unauthorized persons from data sensitive to the nature of its business, clients, or users (Kim and Solomon, 2012). This keeps unauthorized persons from data...
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...they need IT support system that will track and report the progress of problems that are identified by the users. The IT support system needs to monitor the use of IT hardware, such as: keyboard, mouse, monitor, printer etc. in order to improve the service provided for the uses and ensure the services is operated in an efficient way. So In this assignment I will be discussing the principles of systems analysis and one method that are used in the systems analysis process when designing computer systems. It will highlight the advantages and disadvantages of the method. The company wants...
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