Kudler's Recommendations

The processes of Kudler Fine Foods include inventory, payroll, accounts payable and accounts receivable. Using accounting information systems, Kudler Fine Foods has the potential to improve these processes. Kudler Fine Foods has hired an accounting firm to recommend systems to assist with automating their current processes. The accounting firm has recommended that Kudler Fine Foods purchase industry-specific software. The firm will provide flow charts to capture the flow of data from each of their accounting processes and offer recommendations.

Kudler Recommendation

Kudler Fine Foods recently implemented new accounting software to handle the daily sales, inventory, accounts payable, accounts receivable, payroll, and general ledger functions. In conjunction with the new software, Kudler must consider the proper course of action for auditing the transactions to ensure data the accuracy and reliability of the data and for the preparation of the organizations financial statements. The use of audit software will assist management and provide the means to test 100% of the organizations transactions, rather than relying on manual auditing techniques alone. CAAT software provides the auditors for Kudler Fine Foods the ability to examine application controls, identify data inconsistencies, and the compliance testing of general controls. The implementation of embedded audit modules provides “real-time” auditing techniques, thereby ensuring the reliability and timeliness of Kudler’s financial information. The modules are designed to run in the background detecting abnormal data as it occurs rather than several months after the transaction occurs in the system. With the use of CAATs, Kudler can detect errors or miscalculations in the system providing for timely corrections and preventing fraudulent transactions from occurring.

Kudler Fine Foods System Integrity and Validation

With the recent implementation of automated software at Kudler Fine Foods, there is...