System Integrity and Validation

System Integrity and Validation

ACC/542

Preface

In the weeks, a review has been completed to identify the recommended audit for Kudler Fine Foods’ accounting information systems (AIS) processes: payroll, accounts payable, accounts receivable, and inventory. It has been found that payroll would benefit most from an SAS 70 audit. The accounts payable, accounts receivable, and inventory processes are most appropriate for an SAS 94 audit.

These recommendations are made on the basis of payroll outsourcing to Intuit. This audit is Intuit’s audit report shared with Kudler since Intuit completes the payroll. According to Hunton, et. al, (2004), “a SAS 70 audit is applicable to any service organization that wishes to assure its clients of the existence and effectiveness of its internal controls,” (p. 217).

An SAS 94 audit addresses the auditor’s responsibility to fully understand the client’s technology as part of gaining an understanding about the client’s internal controls in the conduct of a financial statement audit. The auditor is required to consider the effect of the company’s information technology on its assessment of control risk (Hunton, et. al, 2004).

The next recommendations focus around the validation and integrity of the AIS system. The Microsoft PowerPoint will follow the brief and present the information in another form.

System Integrity and Validation

The review of Kudler Fine Foods accounting information systems (AIS) will end with discussion of computer assisted audit techniques (CAATs). The purpose of this brief is to follow the Microsoft PowerPoint presentation describing how the selected CAATs will be used to validate data and system integrity within the system, explaining the functions of audit productivity software, and how that software might be used in the systems designed.

Computer Assisted Audit Techniques

Computer Assisted Audit Techniques (CAATs) are techniques used by...