Kudler Fine Foods located in San Diego, California is a specialty food store that is continuing to grow. Due to the company’s growth, it is necessary for Kudler to make a better use of technology for all aspects of the business. Currently Kudler process a large amount of data through computer programs which is used between all three locations, but with upcoming expansions, Kudler needs the ability to track all of that information and also be confident that the information is reliable. With that being said, Kudler would benefit greatly from Computer Assisted Auditing Techniques (CAATs).
It is recommended that Kudler use CAATs, because it will assist with streamlining the IT audit process. CAATs are techniques that “are used to increase the efficiency and effectiveness of the audit function” (Hunton, Bryant, & Bagranoff, 2004, pg. 178). Not only will CAATs assist with making Kudler’s audits go more smoothly, but it will also assist auditors with obtaining more reliable, relevant, sufficient, and useful information. There are 10 key steps of CAATs that can be implemented that will assist Kudler in creating a framework for their audits.
CAATs are divided into two techniques that will be beneficial to Kudler. The first is validating application integrity. The purpose of this technique is to find whether the source code has been compromised. Verifying the overall integrity of the applications is the second CAATs technique. This technique’s objective is to ensure that the data was imported correctly and also to find any irregularities within the data.
Due to the fact that the business continues to grow, the use of CAATs will only assist Kudler in its growth. If Kudler goes with the recommendation to incorporate CAATs, it will assist in streamlining the auditing process.
System Integrity and Validation
Recommendations were made to Kudler to implement CAATs into the auditing process. This implementation will be beneficial to the company as...
References: Apollo Group, Inc. (2011). Kudler Fine Foods. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/internet/index.asp
Bagranoff, N.A., Simkin, M.G., & Strand Norman, C. (2008). Core concepts of accounting
information systems (10th ed). New York: Wiley & Sons.
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