System Integrity and Validation and Summary of Recommendations

System Integrity and Validation

and

Summary of Recommendations

Jessica Noble

ACC 542

March 23, 2015

 Milan Havel

System Integrity and Validation

Since the proposal of the new software at Kudler Fine Foods, the system integrity and the use of computer assisted auditing techniques (CAATs) will need to be discussed. This brief will follow three topics (1) how CAATs is used to validate data and system integrity, (2) explain the functions of audit productivity software, and (3) provide details on how audit productivity software may be used in the system.

CAATs is used to Validate Data and System Integrity

      Auditors use computer assisted auditing techniques (CAAT) for several reasons. CAATs not only help auditors with software but they can use data for analyzing, look for patterns, and identify fraud (Hunton, Bryant, & Bagranoff, 2004). By using CAATs it will increase efficiency for both internal and external audits. By doing this it will allow auditors to look at all financial information. CAATs are valuable to auditors when testing or validating computer applications because they can determine if codes have been accessed illegally. If audits were conducted manually then an auditor would not be able to examine the data.

To verify system integrity, auditors can validate applications through test data, an integrated test facility, or through a parallel simulation. Test data is described as the use of false data entered into the systems. “This false data entered in the system as a means to verify that the expected outcomes will be as intended and exceptions, or variations are tested” (Cerullo, M.V., & Cerullo, M., 2003). Several disadvantages of this method develop, such as the lack of real data being used and the fact that auditors may overlook some tests. Overlooking possible testing scenarios may result in an incomplete look at the system. Integrated test facility are defined as “tests applications and financial data through...