System Integrity and Validation

SMW’s current accounting information system is a cutting edge relational database system through Microsoft Access with internal controls set to adequately prevent and detect errors and fraud. This relational database system tracks sales orders, shipments, accounts receivable, cash receipts, purchases, accounts payable, cash disbursements, inventory levels and other relevant accounting information. The system’s output is compliant with Generally Accepted Accounting Principles (GAAP). The database processes currently in use at SMW are described below.

Kudler Fine Food has expanded business and updated their computer systems to meet demands. As IT information is adopted within the organization, automation control processes has become more virtualized. To ensure that Kudler’s computerize systems function properly an audit must be performed on an annual basis. Management at Kudler Fine Foods wants to see the proposed audit schedules for all systems. Management wants to know the types of audit and how they will be conducted. In addition, management would like to know about events that might prevent reliance on auditing through the computer.

The management team of Kudler fine Foods uses the intranet to keep demographic data on each of its customers. They can access their names, addresses and important data for special mailings. The inventory is managed and the availability of ingredients can be determined. The items from a store can be obtained from what has been purchased. An order table can be used to record pertinent information. The order line can be seen to show the description, quantity and price. The store table is used to retain data for each store. The supplies table contains data information from tax table is used to provide accurate taxes. The tender table is used to provide a record of payment for an order.

New audit technologies assist in audit. It make the audit well organized and best results are achieved efficiently and effectively. The auditor uses computer assisted technique to perform the audit. The ultimate purpose for the use of technology is for a faster and more efficient audit process.

Kudler Fines Foods founded in 1998 and is growing rapidly. When they open their first store, Microsoft Access was selected as the database to track inventory, orders, and customers. The products, they sold are perishable and inventory must be properly tracked. Kudler excessive inventory is always a concern. This paper will evaluate database tables from accounting perspective, provide recommendation for improvement and create pivot table to help Kudler's management to improve decision making process.

Kudler Fine Foods (KFF) is a specialty food company that is base in California and has stores located in Encinitas, Del Mar, and La Jolla, its main store. At the stores customers can purchase fine foods such as produce, meat, and other specialty items that they provide. Kudler Fine Foods is considered one of the best fine food stores around. However, Kudler is in serious need of a network infrastructure upgrade of their old one. With the introduction of technology advancements in data collection items such as; network access and increased speeds while still providing information protection; and company communication; are the primary goals of the enterprise network. This step is important because it will increase the income and will reduce the cost of operations within the KFF stores. Kudler Fine Foods will go back up to technological speed as the network upgrade is completed, while at the same time improving the way they keep track of inventory and sales by using data mining techniques, which will be collected and analyzed in real time.

• Develop information systems-related activities to maximize the business value within and outside the organization.

In today’s highly competitive global marketplace, organizations must learn to improve efficiency and take advantage of all available resources. Huffman Trucking understands this concept and has requested that their information technology infrastructure be evaluated to identify any deficiencies and maximize operational efficiencies accordingly.

Another aspect relevant to the information technology is the system-generated data and reports. If auditors choose a control that uses some information generated from the company’s internal IT system, the effectiveness of the control requires obtaining audit evidence of the accuracy and completeness of the internal information. In the ZOU’s case, when testing of the controls over risk #2, auditors use reports, which are automatically generated by the Warehouse K system. Auditors decide to further test the controls over accuracy and completeness. When testing the controls over risk #3, both monthly reporting package and budget information are somewhat generated internally by ZOU’s internal system. Depending on different systems, auditors decide to further test controls for accuracy and completeness with respect to the monthly reporting package, which is generated from PeopleSoft.

Accounting Information Systems The Crossroads of Accounting and IT by Donna Kay, Ali Ovlia Instructor’s Solutions Manual

The system allows to company to modernize its strategies and processing more efficiently than its competitors

• Ensure that an experienced team is selected with more experienced staff allocated to higher risk audits and high risk balances.

The IT department could outsource some activities to reduce some of the workload. They could also centralize some IT decisions to better align IT with the business strategies and provide more support to the affiliates.

Over the years Kanthal has used its traditional accounting management system to cost its products. In 1985, when Carl-Erik Ridderstrale became president he developed the Kanthal 90 plan to increase overall profitability. He quickly recognized that in order to implement this plan a new account management system was needed to supplement the new strategy. In lieu of this need a new account management system was devised.

The added IT solutions will help in improving company’s scalability. Using these solutions, in a long run, will help the company in expanding its customer base and its reach across the country.