System Integrity and Validation
System Integrity and Validation ACC 542
System Integrity and Validation In the past months, Jarowito Company has analyzed carefully Kudler Fine Foods accounting information system. It has explored the key business and the accounting information needed. It has analyzed strength and weaknesses of the systems and technology, suggesting some technology opportunities. It has evaluated the possible threats, suggesting how to avoid them. It has recommended the use of industry-specific software. It has examined the automation of the company’s data table through its elements and it has explained how the use of pivot tables can improve management decision-making. It has scrutinized the internal controls and it has suggested the implementation to achieve corporate governance. It has also analyzed the process of the audit plan that Kudler should follow. Finally, Jarowito will recommend ways the audit documentation and process may improve the security and validation of their current system by using computer technology techniques called CAATS. Computer assisted audit tools and techniques (CAATS) are software’s that increase the productivity of auditors during an audit, the software’s can extract data from the system that has to be analyzed. CAATS are also techniques that increase the efficiency and effectiveness of the function of the auditors (Bagranoff, 2008). CAATS can be use for the following purposes to validate the integrity of applications and validate the integrity of data. 1. Validate application integrity: As per Bagranoff, the objective of application integrity is to determine if the source code has been compromised.” The application can be validated through test data, integrated test facilities, and parallel simulation. Test Data: the auditor creates a dummy data file in the system, runs all the reports needed and compares them
System Integrity and Validation In the past months, Jarowito Company has analyzed carefully Kudler Fine Foods accounting information system. It has explored the key business and the accounting information needed. It has analyzed strength and weaknesses of the systems and technology, suggesting some technology opportunities. It has evaluated the possible threats, suggesting how to avoid them. It has recommended the use of industry-specific software. It has examined the automation of the company’s data table through its elements and it has explained how the use of pivot tables can improve management decision-making. It has scrutinized the internal controls and it has suggested the implementation to achieve corporate governance. It has also analyzed the process of the audit plan that Kudler should follow. Finally, Jarowito will recommend ways the audit documentation and process may improve the security and validation of their current system by using computer technology techniques called CAATS. Computer assisted audit tools and techniques (CAATS) are software’s that increase the productivity of auditors during an audit, the software’s can extract data from the system that has to be analyzed. CAATS are also techniques that increase the efficiency and effectiveness of the function of the auditors (Bagranoff, 2008). CAATS can be use for the following purposes to validate the integrity of applications and validate the integrity of data. 1. Validate application integrity: As per Bagranoff, the objective of application integrity is to determine if the source code has been compromised.” The application can be validated through test data, integrated test facilities, and parallel simulation. Test Data: the auditor creates a dummy data file in the system, runs all the reports needed and compares them
References: Apollo Group, Inc. (2006). Kudler Fine Foods. Finance & accounting - overview. Retrieved from ACC/542 – Accounting Information System course website. Functions of Audit Productivity Software. (2011). Retrieved from http://www.ehow.com/list_7470564_functions-audit-productivity-software_.html