System Integrity and Validation

Better Essays
System Integrity and Validation ACC 542

System Integrity and Validation In the past months, Jarowito Company has analyzed carefully Kudler Fine Foods accounting information system. It has explored the key business and the accounting information needed. It has analyzed strength and weaknesses of the systems and technology, suggesting some technology opportunities. It has evaluated the possible threats, suggesting how to avoid them. It has recommended the use of industry-specific software. It has examined the automation of the company’s data table through its elements and it has explained how the use of pivot tables can improve management decision-making. It has scrutinized the internal controls and it has suggested the implementation to achieve corporate governance. It has also analyzed the process of the audit plan that Kudler should follow. Finally, Jarowito will recommend ways the audit documentation and process may improve the security and validation of their current system by using computer technology techniques called CAATS. Computer assisted audit tools and techniques (CAATS) are software’s that increase the productivity of auditors during an audit, the software’s can extract data from the system that has to be analyzed. CAATS are also techniques that increase the efficiency and effectiveness of the function of the auditors (Bagranoff, 2008). CAATS can be use for the following purposes to validate the integrity of applications and validate the integrity of data. 1. Validate application integrity: As per Bagranoff, the objective of application integrity is to determine if the source code has been compromised.” The application can be validated through test data, integrated test facilities, and parallel simulation. Test Data: the auditor creates a dummy data file in the system, runs all the reports needed and compares them



References: Apollo Group, Inc. (2006). Kudler Fine Foods. Finance & accounting - overview. Retrieved from ACC/542 – Accounting Information System course website. Functions of Audit Productivity Software. (2011). Retrieved from http://www.ehow.com/list_7470564_functions-audit-productivity-software_.html

You May Also Find These Documents Helpful

  • Better Essays

    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).…

    • 1049 Words
    • 5 Pages
    Better Essays
  • Good Essays

    In addition to the audit plan for the analyzed processes, of Kudler Fine Foods, encouragement of ways to improve audit documentation and process, by using computer technology was addressed to Kudler’s management team. As a result, Kudler Fine Foods management team is considering incorporating proposed computer assisted auditing techniques (CAATs) within its systems. CAATs will increase efficiency levels of an auditor’s personal productivity during analysis and data extraction of the audit which is beneficial to the performance of Kudler. CAAT will also service as a validation agent providing assurance of data integrity and reliability to the operations of Kudler Fine Foods for its users. CAAT surfaces inconsistencies that can be verified timely.…

    • 1007 Words
    • 5 Pages
    Good Essays
  • Good Essays

    External audits will assess computer-base accounting systems. The purpose of the audit is to determine how the computerized system impacts Kudler’s financial statements. Substantive test will be done to ensure proficiency; and it will begin with a preliminary test. A risk assessment will be another objective of the audit. “Risks of material misstatement can arise from a variety of sources, including external factors, such as conditions in the company 's industry and environment, and company-specific factors, such as the nature of the company, its activities, and internal control over financial reporting” (Audited No.12, 2012). The risk must be evaluated because the system controls strengths and weakness affects the scope of the audit. “The risk-base audit approach provides auditors with a good understanding…

    • 986 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Before any strategy takes place, an auditor must determine the end result desired from the Information Technology being used as well as the type of technology being dealt with. The most important thing is security thus it is vital to know this technology in and out to be able to determine its strengths and weaknesses. This allows for proper compensation to combat such attacks whether they are fraudulent or accidental in nature. It is necessary to be familiar with different types of proven viable internal control setups to properly test and gage an IT’s internal control system. There are three different strategies use when testing internal controls. First includes assessing the controls using user control information. In this strategy, an auditor would gather computer-generated reports and compare those to all documentation on specific transactions. This process is also known as auditing around the computer because it deals with more hard copy documents. The next strategy entails using application controls to determine the level of risk…

    • 627 Words
    • 3 Pages
    Good Essays
  • Better Essays

    References: Apollo Group, Inc. (2013). Kudler Fine Foods: Intranet. Retrieved from ACC/542 – Accounting Information Systems course website.…

    • 1178 Words
    • 5 Pages
    Better Essays
  • Good Essays

    References: Apollo Group, Inc. (2007). Finance & Accounting - Accounting System Overview. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Kudler2/intranet/accounting-system-overview.asp…

    • 986 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Apollo Group, Inc. (2004). Kudler Fine Foods. Finance & Accounting – Accounting System Overview. Retrieved April 05, 2008. MBA/502 – Managing the Business Enterprise. https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler/Finance/KudlerFinanceOver001.htm…

    • 1432 Words
    • 6 Pages
    Best Essays
  • Good Essays

    One of the key benefits Kudler Fine Foods will gain will be the ability to handle all the raw data that you did not have command of before. This new system not only allows you to improve your financial strategies, but you can also increase your management potential by forecasting future investments. By prompting these new strategies, you are able to access areas of information not easily accessible before, like cash flow and asset management, just to name a few. How can we achieve this level of satisfaction in one software product? Let’s take a look at some of the key features that are built in to the accounting software package.…

    • 793 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Industry specific software for Kudler Fine Foods would assist in integrating the organization’s accounting processes as determined in the needs document. The organization’s existing processes are not meeting the demands for growth and productivity. According to one source, “the successful adoption and implementation of an information system depends on the proper assessment of numerous individual, technology, task, organizational, and environmental factors” (Turban & Volonino, 2009, p. 528). Organizational systems analysis and design, databases, programming, networking, and the web each have a function with regard to the four use cases presented for inventory, accounts payable, accounts receivable, and payroll.…

    • 757 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Acc 205 Week 1 Assignment

    • 1709 Words
    • 7 Pages

    Walther. (2012). Principles of Accounting: Volume I (1st ed.). San Diego, CA: Bridgepoint Education, Inc. www.ashford.edu…

    • 1709 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    New technology in information systems have bought significant changes in accounting profession, practices and processes. It has increased the efficiency and accuracy in accounting and has speed up the process for manual accounting tasks, but also improved security of accounting data and increased transparency. Large organizations and multinationals are changing over to this new information systems and technologies to carry out their accounting tasks on global basis. This information system has led to standardization not only among the different divisions, locations and offices of a single organization, but also on a global basis.…

    • 427 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Over the past few weeks our team has looked into a number of aspects of Kudler Fine Foods and made recommendations as necessary in hopes of updating and replacing existing components of the companies IT systems in hopes of making the company more productive and profitable. Last week out team focused on the importance of audits and at a number of different types of audits that should be conducted to future evaluate the company as a whole. From our research we found that the most appropriate audits to employ are the SAS 94 and the Attestation audits (in particular, the data analytic review) (Cornwall, Sullivan, & Chandler, 2012). These types of audit systems seem to best at incorporating all of the functions of Kudler Fine Foods.…

    • 1023 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Kudler Fine Foods has reached a point in their growth that they need to enhance the systems they are currently using for processing their financial information. It is necessary for Kudler to make some decisions on these upgrades. The recommended automation, enhancement, and maintenance schedules supported by flowcharts show the data flow for each of the four accounting upgrades for payroll, accounts payable, accounts receivable, and inventory are included within the brief. The accounting operations of Kudler Fine Foods will be enhanced by the addition of the new software to their existing system.…

    • 699 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Audit Proposal

    • 1321 Words
    • 6 Pages

    The types of information technology audits are attestation, findings and recommendations, SAS 70 audits, and SAS 94 audits. If Kudler wants the auditor to provide an assurance for each of the system, an attestation audit could be used. An attestation audit can assist Kudler by issuing reports on examinations, reviews, or agreed-upon procedures. An attestation audit can provide Kudler with independent assurance on the reliability or validity of information related to the four systems under review (KPMG, 2011).…

    • 1321 Words
    • 6 Pages
    Better Essays
  • Best Essays

    With rapid development of the information technology, computerized accounting information system plays an increasingly crucial role in the operation of organization regardless large, medium or small enterprises. This can be contributed to the merits of the marriage of accounting and the computer science technology, which dramatically improve the accuracy and speed of the process of information system. However, along with the advantages of the computerized accounting information system, there emerge several deadly deficiencies which, if not appropriately deal with, can be greatly detrimental to the interests of the organization and, even worse, may lead to collapse of the company. This essay mainly focuses on several important aspects of the deficiency of the computerized accounting information system and then provides feasible solutions to prevent the negative influence derived from these threats.…

    • 1788 Words
    • 6 Pages
    Best Essays