System Integrity and Validation

Preface

Kudler’s Fine Foods is interested in effectively integrating technology into its business operations. Over the past five weeks the accounting and information needs of Kudler Fine Food were identified and suggestions were made and different plans were recommended to improve their accounting information systems. Recommendation was made to purchase industry-specific software that can add value to the accounting operations. Before any data may be automated, it must be evaluated for completeness. Prior to upgrading any information systems the company would need to identify and analyze possible risks and internal control points using audits to evaluate performance. Computer assisted audit techniques are used to review the company systems to ensure system integrity and validity. This paper will recommend ways the audit documentation and process may be improved using computer technology.

System Integrity and Validation

The objective of system integrity is to make sure the information system works the required function without any complications and is free from unintended and unauthorized users. The information system integrity application is substantiated through test data, integrated test facilities, and parallel simulation.

In test data, the auditor creates a dummy data file in the system, runs all the reports needed and compares them with the expected results. Test decks are examples to test application logic and processing. The method depends on the auditors’ anticipating and capturing all possible deviations and exceptions. The step is very hard because even the most experienced auditor may miss some information. The process does not allow a live data analysis.

Integrated test facilities (ITF) allow the auditor to test the data live. The auditor still creates a dummy file that merges with the original file and compares results with expected results. It will also analyze the process for any corruption.

Parallel Simulation reproduces a module or a...