System Integrity and Validation - Kudler Fine Foods

System Integrity and Validation - Kudler Fine Foods

Theresa Gibbs

Acc/542

October 29, 2012

Yasin Dadabhoy

System Integrity and Validation - Kudler Fine Foods

Over the past few weeks the team has analyzed Kudler’s information systems, recommended industry-specific software, analyzed its inventory data tables, and internal controls and risks for an audit proposal. After analyzing the necessary components the team recommends that an SAS 94 audit is appropriate for Kudler. To conduct the audit the auditor will use computer assisted audit tools and techniques (CAATTs) or in Kudler’s case computer assisted audit techniques (CAATs). The following brief is an explanation of how CAATs is used to validate data and the system integrity, and explain audit productivity software.

CAATs

CAAT is techniques that increase the auditor’s productivity and effectiveness during the audit function. CAATTs uses tools, such as software to increase the auditor’s productivity and extract data, and analyze the data in addition to the techniques. The techniques are used to validate application integrity and verify data integrity of Kudler’s information systems. “These techniques include generating test decks of data, writing and embedding automated audit modules, and performing digital analysis and linear regression on a client’s data” (Hunton, 2004, p. 179). CAAT assists the auditor in collecting sufficient, reliable, relevant, and useful evidence that supports the planned audit objects. The Standards Board of the Information Systems Audit and Control Association (ISACA) governs the use of CAATs with Guideline 70. Guideline 70 provides guidance in the areas of planning, execution, documentation, and reporting when using CAATs.

The auditor uses a decision-making process when and how to use CAATs in the audit. The process is a 10 step framework. Step one is the key objectives set during planning and risk assessment. High risk areas, such as gaps in Kudler’s inventory reporting...