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Kudler Fine Foods Virtual Organization

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Submitted By dsclark84
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Kudler Fine Foods Virtual Organization

University of Phoenix

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Recommended Course of Action Kudler Fine Food (KFF) is growing beyond the owner’s initial vision. As a growing company, KFF needed to take advantage of technology to improve business and stay competitive in the organic food industry. KFF, after consulting with us during Week 2, has requested additional information to make sure the recommended system would work as it is intended. Because of this, I have laid out a variety of internal controls to put into place to curb the risks that could be associated with using such a system. The risks will not only be evaluated, but solutions will be given to mitigate the risks associated with the different areas the new software is intended to help. Overall, the recommended course of action for KFF is to put in place multiple internal control elements to ensure the systems not only work efficiently to maximize profits, but work to guard against fraudulent activities. A big focus for this brief is making sure that Sarbanes-Oxley Act of 2002 is followed, specifically section 404, which states management’s responsibility for establishing and maintaining the internal controls and for management to reevaluate the internal control structure at the end of each year. In addition to this, it is recommended that the control environment is enhanced to better give credibility to the new internal controls. With the control environment changing, KFF will likely change some of their messaging to employees, including but not limited to the areas that deal with ethical values, integrity, overall management philosophy, and the way authority and responsibility is organized within KFF. Being so early on in the implementation of the new system, the majority of the brief presented will serve as preventive corrective controls.

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