System Integrity and Validation

System Integrity and Validation

Sally Gupta

ACC/542

October 22, 2012

Brad M. Thompson

Preface and Summary of Recommendations

Kudler has transformed its accounting information system by implementing an industry-

specific software system. In order to ensure that the system is functioning optimally, a SAS 94

audit is recommended using CAATS in the areas of application software review, and data

integrity review. Physical and environmental review and business continuity review will not use

CAATS at this time (ITGeneralControls). The CAATS audit will focus on the validation of

application integrity, and fraudulent transactions in the areas of accounts receivable, accounts

payable, payroll, inventory management, sales, and customer information.

Abstract

Before computers were available to assist in the organization and management of business documents, audits were conducted manually, and on paper. Now computers can assist companies to manage their accounting information systems electronically, and can perform audits.

CAATTS refers to “computer assisted auditing tools and techniques.” CAATS refers to “computer assisted auditing techniques”(Hunton, Bryant & Braganoff, 2004). What follows is a discussion of how CAATS could be used to improve the efficacy and efficiency of an audit at Kudler Fine Foods.

System Integrity and Validation

Computer Assisted Auditing Techniques to Validate Data and System Integrity

CAATS assists IT auditors to obtain “sufficient, reliable, relevant and useful evidence to support predefined audit objectives” (Hunton, Bryant & Braganoff, 2004, p. 184). Information for CAATS planning and execution as well as documentation is in Guideline 70, created by the ISACA Standards Board.

There are ten steps to applying CAATS, and these are stated in the accompanying slide presentation. At Kudler’s, CAATS will be used to both validate data and verify its integrity.

CAATS could be...