System Integrity Validation

System Integrity and Validation

ACC/542

Preface

Kudler Fine Food is a specialty food store with three locations opening up over a five year span. The success of the company has been due to having a strong business model and an accounting information system. The current system, however, does have some flaws and is need of improvement. Over the past few weeks, Kudler’s management has received recommendations on how to increase the productivity and profitability of the information system. Kudler should implement an industry-specific software to improve the accounts payable, inventory, payroll, and add an accounts receivable. Using the industry-specific software will allow for streamlining of process, cutting out double entries, and improve communication between the three stores. The company should move away from broad spreadsheets and use pivot tables that are easier to read and provide the data needed. The managers need to set proper internal controls and audit them on a regular basis.

System Integrity and Validation

Kudler Fine Foods has upgraded their system to include a more industry-specific software. The company is becoming more reliant on computers to perform accounting tasks. Due to this reliance, management needs to consider the integrity and validity of the data within the system. The information in the accounting software should be accurate and reliable. This brief will discuss how computer assisted auditing techniques (CAATs) are used to validate data and system integrity within the system, explain the functions of audit productivity software, and explain how audit productivity software might be used in the systems designed.

How Will CAATs be Used to Validate Data and System Integrity

According to Hunton, Bryant, & Bagranoff (2004), “CAATs are techniques used to increase the efficiency and effectiveness of the audit function” (p. 178). CAATs fall within two categories of techniques: ones that validate the system integrity...