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System Integrity and Validation

Good Essays

System Integrity and Validation
ACC/542
March, 2 2014
Prof: Edgar Coronel

Preface
Kudler Fine Food is a specialty food store that caters their service to a variety of special clients. Providing great service has been a calling card for Kudler Fine Food. Since their first store was open back in 1998, they have enjoyed great success. This has also allowed them to open a few more locations. Having the ability to have a strong accounting information system and great business structure in place was vital to the growth and development of Kudler Find Food. Even though their current system has allowed them to have success, there are improvements that are needed that would allow them to operate …show more content…

Data query is a CAAT that can detect fraud. A data query is a search to determine if the results fit within the context of evidence of the audits. The test includes tests of controls, substantive testing, and interviews with client personnel, risk assessment performed during audit planning, and the environment in which the business operates. The auditor should consider, for example: ■ Does the evidence make sense when other relevant trends are considered? ■ Does the evidence support assertions made by management or employees? ■ Does the CAAT pertain to an area identified as high risk? Functions of Audit Productivity Software
If an auditor uses audit production software, they should notice and increase in effectiveness and productivity. Automation of data can save an auditor time and effort. Also, the CAAT can mismatch items and regulatory issues. Another advantage an auditor gains are electronic working papers, groupware, time and billing, reference libraries and document management. Electronic paper increases productivity because the auditor no longer is spending time on manually auditing work papers (Hunton 2004). Groupware allows sharing of information across firms and between the auditor and the clients (Hunton 2004). Time and billing software can ease the formerly erroneous process of accounting for chargeable hours and compiling and preparing bills

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