System Integrity And Validation

System Integrity And Validation

Kudler Fine Foods: System Integrity and Validation
The management team at Kudler Fine Foods realizes that computers are essential tools used in the day to day operations of the business. Over the past year, Kudler implemented the use of an accounting information system (AIS) – Peachtree Quantum. Peachtree Quantum streamlined the daily sales, inventory, accounts receivable, accounts payable, and payroll processes; this aided in increasing productivity and efficiency. Kudler recently set up an audit plan in preparation for the annual audit. This year the auditors will rely more on the use of the computer system to perform the functions of the auditing job. Auditors can use computer assisted software tools and techniques to improve the effectiveness of the audit process. Kudler will consider ways to improve the audit documentation and audit process using computer technology. Focus will be placed on choosing the best computer assisted audit techniques (CAATs).
Auditors can use computer assisted audit tools and techniques (CAATTs) to be more efficient and effective with meeting pre-defined audit objectives. Hunton, Bryant & Bagranoff states that computer assisted audit tools and techniques are placed into two categories: software used to increase an auditor’s personal productivity and software used to perform data extraction and analysis; these include techniques to increase the efficiency and effectiveness of the audit function (Hunton, Bryant, & Bagranoff, 2004, p. 178). In this paper, emphasis will be placed on recommending suitable CAATs and audit productivity software that the auditors can use for streamlining Kudler’s audit process.
Internal and external auditors use computer assisted auditing techniques (CAATs) for several reasons. Use of computer assisted auditing techniques reduce the amount of time spent on administrative tasks because the audit function is automated; it improves the quality of the audit report because testing can be done on 100% of...