...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 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 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 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 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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...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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...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 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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...Intellectual Integrity One skill distinguishes the effective CEO: the ability to make disciplined and integrated choices. Published: May 28, 2013 / Summer 2013 / Issue 71 by A.G. Lafley and Roger Martin, w ith Jennifer Riel By the time people reach the most senior levels of a company, they are expected to have a degree of personal competence and a strong gut feel for making good executive decisions. Otherwise, they wouldn’t be considered for a top job. But how do they attain this acumen? At Procter & Gamble (P&G)— where we (A.G. Lafley and Roger Martin) served as chief executive and one of the senior advisors to the company, respectively—we developed a systematic approach to cultivating that skill among emerging and senior executives. We found that business literature contains a great deal of advice for chief executives about strategy and execution, but much less is written about how to become the kind of person who can bring the right judgment to bear on business decisions, especially when facing a disruptive environment. Thus, many CEOs develop their own form of on-the-job training, quietly honing their own heuristics for strategic thinking. That makes it difficult to tease out and develop the personal attributes that separate successful leaders from less-successful ones. In our view, leaders would do well to take a more systematic approach to developing their decisionmaking capabilities. The place to start is where we started at P&G: with intellectual integrity. In common...
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...Academic Integrity This is my first time to get in touch with this new phrase: Academic integrity. To be honest, Students in Czech Republic including me, seldom acquire knowledge concerning subjects like Academic Integrity; so I have to admit that I only have faint sense of Academic Integrity, which is never cheating in examinations. I think it is partly caused by European education system. When I was a kid, the only understanding of integrity is to be an honest child or do not lie to your parents and teachers. When I grow up, I clearly know that cheating is a really bad thing. Thus I think, to some extent, these two rules are more like moral integrity but academic integrity. More often than not, the average student seeks an immediate answer by going into Google and asking it a question. This passes for “research” today. The trouble with this method is that, once an obstacle is encountered, the average student declares, “I could not find any research on my subject.” Beyond the fact that the research skills are poor, the next issue is the fact that, once the student finds research, he or she does not know what to do with the information. That is, there appears to be no attempt at explaining the significance of the research, or asking substantial questions in response to it. I think integrity is important for writing in academics. Being able to submit a paper or essay with the confidence your work is completely honest is a great feeling. I feel being honest in your writing gives...
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...Position Paper Communication Ethics Macon Borne Dr. Carlson is facing a situation involving Michaels present and future that needs to be handled with the five values of ethics. In the paper I will try to explain how three of the five ethical values would help to make the communication process of Michael’s options easier on Dr. Carlson. Truth, integrity and care seem to be the three ethical values that fit this situation. Truth is how accurate and how reliable the content of communication is. Truth, in my opinion, is the most important aspect of communication. Most, if not all, relationships between people are based on trust, which is how we rely on the accuracy and information exchanged between persons. In the situation regarding Michael, Dr. Carlson should be truthful when explaining to Michael his options. Dr. Carlson needs to tell Michael that his body systems are slowly falling and that he is having difficulty breathing. Dr. Carlson needs to tell Michael the full extent of both options. Explain that the more aggressive option is to put him on a ventilator to help him breathe and that he would probably die on it. Explain that the second option is to administer him morphine. The morphine would ease the pain but not help him breathe; this would cause him to slip into death with less pain. Dr. Carlson should also explain that each option as a very slim chance of helping him rally and live, for at least a short while. If Dr. Carlson gave Michael all the information listed...
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...values Questions: How this would affect your performance if you were a manager at Kudler? How those values align with the values of Kudler Fine Foods? Personal Values: A personal value system is a set of principles or ideals that drive and/or guide your behavior. Your personal value system gives you structure and purpose by helping you determine what is meaningful and important to you. It helps you express who you are and what you stand for. If you are unaware of, or become disconnected with your values, you end up making choices out of impulse or instant gratification rather than on solid reasoning and responsible decision-making. Your values define your character. They impact every aspect of your life including personal and work behaviors, your interactions with family, friends and co-workers; your decision-making processes and the direction you take in life. This is why it is so important to know what you value and what is important to you. No matter what tradition we are brought up in, there are characteristics we value in others which transcend social, economic and religious boundaries. Some of these characteristics are: Integrity, Respect, Loyalty and Responsibility. • Integrity is trustworthiness, honesty and uprightness of character. We value people of integrity because we know what to expect from them • Respect is honoring the worth and dignity of...
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...As I considered my personal values and the values taken into consideration in the simulations, I concluded that my personal value system had not changed but had expanded. Before performing the simulations, my personal value system consisted of values such as integrity, respect, trust, loyalty, and quality relationships. The new values that I have added to my value system are time and confidentiality. In the following sections, I will discuss my values on time, confidentiality, and loyalty an existing value. Valuing Time Time has become one of my values because everything that I do and every decision that I make depends upon how I allocate my time to perform and complete my tasks. I also consider time to be an important value because I must consider it when I create and plan schedules to show when project assignments are to be completed. And, time plays an important role on my job when I have to set up conference calls with out-of-state vendors or customers to finalize decisions and job assignments. Valuing Confidentiality Confidentiality has become one of my values because it is important for me to be aware of how I handle confidential information. Confidentiality is very important in my line of work because many of my job assignments involve classified information that is authorized for only certain individuals to handle. Confidentiality is also crucial because I must always be mindful of whom I discuss my job responsibilities with, conceal classified...
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...norms. 3. Explain the value system and the significance of the socialization process. 4. Explain Louis Rath’s seven value criteria. 5. Explain cognitive dissonance and ways to reduce it. TYPE OF INSTRUCTION: Instruction and Small Group Discussion TIME OF INSTRUCTION: 2 Hours LEAD IN: The Army is probably the largest and most diverse organization in the country with an ethnic and racial makeup most reflective of American society. Each individual brings a set of values and attitudes that have been cultivated over many years. Additionally, these values and attitudes are still being shaped and refined with each new experience. Many of you have strong memories about recent events in your lives, such as promotion, schooling, a new baby, or a transfer. These events and ones yet to come, serve to shape your values and attitudes for the future. However, values and attitudes do not automatically change just because someone puts on an Army uniform. Some values and attitudes, when coupled with a lack of awareness, or insensitivity about others that are different from ourselves, can produce confrontations, anger, and even violence. It is imperative all soldiers and civilian employees recognize and manage their differences so they do not interfere with the Army's mission effectiveness or ability to fight and win on the battlefield. PART I. VALUES SHOW SLIDE #1 DEFINITIONS 0 Values 1 Value system | 1. Values. Values are attitudes...
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