Kudler\'s System Integrity Validation Describe Selected Computer

Kudler's System integrity Validation Describe selected computer assisted auditing techniques validate data system integrity system. Explain functions audit productivity software. Explain audit productivity software systems designed

Kudler's system integrity validation

The essay gives a detailed information on how computer assisted auditing technique can be used in the validation of data and system integrity within an accounting information system, the functions of audit productivity and an account of the audit productivity software used in the system designed.

The recommendation given to Kudler Fine Food tends to show how computer have increasingly become important in the auditing field and how it has made auditing easer at the same time offering numerous advantages to the business.

Role of Kudler's system integrity validation (CAAT) in the Audit process

According to Lovata, (2000 p 60-68). And David Janvrin an assistant professor at Iowa State University, Kudler's system integrity validation or Computer assisted Audit Technique (CAAT) uses specific applications and software to extract and evaluate files, their trends, identify the expectation or purpose of audit and then report any fraud found among the data or file given.

Thou many audit firms including the leading international auditing firm Deloite have pointed out that from an international viewpoint the application of computer assisted auditing techniques in the validation of data and system integrity is not as high as it was initially expected but this could improve and more businesses will use CAAT due to the fact that research has proven that it improves audit effectiveness, quality and the speed at which it performs its' task is also high as compared with the traditional manual auditing.

CAAT is comprised of utility programs, purpose-written programs and auditing package programs, that enhances validations of data and system integrity.

Kudler's system integrity validation will identify journal entries; examine fraud risks and also inventory completeness and existence, and according to the SAS Nos. 104-111 (risk standard) Kudler's system integrity validation will be able to choose from the electronic files available any transaction as a sample to audit, sort transactions using specified characteristic, evaluate the whole file or records instead of only the sample and then the system will give a report on control effectiveness. Lastly Kudler's system will be able to conduct certain procedures which include the aging of accounts receivable to examine the accuracy level of all files.

Another important fact to note about use of CAAT in validation of data and system integrity is the role played by IS auditor who will be in charge of operating the system and will also preview the final report for verification, conduct if necessary a reconciliation of accounts. The IS auditor is also supposed to confirm integrity of the CAAT system be conducting initial trials and ensure that security and confidentiality of the data are maintained.

Functions of audit productivity software

Shumate & Brooks (2001, pp 50-55). listed some of the functions of audit productivity software to include; analysis of statistics, extraction of sample file or data, identifying missing sequence from the trend of data, stratification and queries of data, cross tabulation and calculation of figures in the data or file given.

Dowling & Leech (2007p 92-116). has also given a separate list of functions that can be performed by audit productivity software that include; documenting and presenting data to users in the form of flow charts, graphs or word document, transfer of files from one department or office to the other, management of data by using intranet software and most importantly performing timely annual audit as per the set schedule.

Audit productivity software in CAAT

The Kudler's system of integrity and validation will use audit productivity software in fraud detection, which are data patterns not consistent with the normal routine of accounting, this can be achieved through evaluating the financial statements given then comparing such statements with non-financial information available from the records like accounting ratio to confirm whether they are consistent with one another or not. Audit productivity software will also detect information that are not verifiable that had been fixed in the records given to conceal fraudulent activity (Lovata, 2000 p 60-68).

Data management by providing the system designed with electronic connectivity which will give the company's auditor access to input additional files into a centralized data repository system,

The audit productivity software has a specially designed tool called 'groupware', which is enables numerous users of the system to communicate with one another easily, share information available in the centralized data system and perform task more faster. Hence through the software auditing managers can supervise the work being done by member of staff from any location he or she might be (Shumate & Brooks 2001, pp 50-55).

Audit productivity software has features that can enable audit tracking and planning. The database tools can create a budget, establish an 'audit universe' and keep record of risk values, while the project management tool can in the software be used to keep track of current activity that relate to auditing and create schedules for auditing to be done.

Recommendations for Kudler's system integrity validation

Kudler Fine Food has a branch network in three different locations within California that offer a wide menu of food to their esteemed customers. Its' main business objective in particular the owner and founder Kathy Kudler is to offer their customers high quality food stuff at a very competitive and affordable prices.

Recently the company implemented a new system that would process accounting information that include; their daily sales, inventory, accounts payable, account receivables and payroll for the staff. Consequently it will also be important for the company to consider using computer assisted auditing techniques which will ensure that the data or files in the new accounting information system are accurate, reliable and free from any fraudulent activity. The auditing software that are recommended for the company will ensure the validity of data in the system pertaining to the company's daily sales, inventory, accounts payable, account receivables and payroll for the staff.