Internal Control and Risk Evaluation
Kudler Fine Foods has requested information on controls that will be required for the accounting information system that was suggested by Team B earlier in the month. Kudler Fine Foods needs information on the following topics: analyze the risks in the system, identify all risks and internal control points by incorporating the controls and risks into the flowcharts, design internal controls to mitigate risks to the system, evaluate the application of internal controls to the systems, and discuss other controls, outside the system, that they may need. Analyze the risks in the system
With any information system there are always risks. With the customized system that Team B suggested there should not be many risks with the system because the system is customized for Kudler Fine Foods and all their needs. If proper separations of duties are put into place there will be a huge risk with internal controls for Kudler Fine Foods. Identify all risks and internal control points by incorporating the controls and risks.
The one risk that will cause a problem is separation of duties. Kudler Fine Foods need to have more than one person that can access certain information. It would be best if there were at least two people that had access to certain information. For example, one person would have access and would input payroll information while another only had access to only print checks. Also each person would have to sign into the system with a user name or number and a password. The system will automatically document what user entered into each account and what was done in the account. While the system would do all the figuring for the payroll department, this will eliminate only one person having control over the payroll. This will also allow for any mistakes to be found and questioned. Design internal controls to mitigate risks to the system
As stated in the previous paragraph separation of duties is a major part to lessen the...
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