System Integrity and Validation

System Integrity and Validation

Adnan Ilyas

ACC/542

04/26/2010

Charles Sanders Moran, II

System Integrity and Validation

Preface

Kudler Recommendations

Kudler Fine Foods recently implemented a new accounting information system to process payroll, accounts receivable, accounts payable, inventory, and daily sales. In conjunction with the recommended audit types, it is critical for Kudler to consider the various computer assisted audit techniques. These techniques ensure data in the accounting information system is accurate sufficient, useful, and reliable. The audit techniques recommended will allow Kudler to validate the integrity of the data imported and help with realizing the validity of Kudler’s payroll, accounts receivable, accounts payable, and inventory systems. The computer assisted audit techniques recommended are test data, integrated test facility, parallel simulation, and Benford’s Law. These techniques can be run concurrently with daily operations to prevent disruption to Kudler’s daily operation while providing a verification of validation of data and system integrity.

In the previous brief, two types of audit plans were identified to analyze the processes of payroll, inventory, accounts payable, and accounts receivable. This brief will entail the advantages of using computer technology in the audit documentation and process. Furthermore, the recommended techniques will be used to validate data and system integrity within the Kudler system. Additionally, the functions of audit productivity software and how it may be used in the systems designed will be explained. Finally, a short PowerPoint presentation is included highlighting the topics covered in this brief.

Clearly, the audit documentation and process can be improved using computer technology in various ways. Computer technology can be used in aiding an audit by allowing repetitive tasks to be automated. This compresses the timeline for an audit...