System Integrity and Validation

ACC/542 Accounting Information Systems
August 11, 2014
Irene Branum

Preface
Kudler Fine Foods began operations in 1998, by Kathy Kudler; the company has grown from one store to three and aspirations to add more locations in the near future. Our company was hired to analyze Kudler’s future accounting technology needs. We recommended a system to automate the accounting functions of accounts payable, accounts receivable, inventory, and payroll. We concluded that upgrading its accounting information system with retail-specific software instead of custom written software would be best for Kudler Foods. We have assessed the design basics of the data tables from an accounting perspective; recommend improvement to the data tables, and clarified how the information in the pivot table advanced decision-making for management The pivot table made from the information extracted from Kudlers inventory report for year-end will improve the decision-making process of inventory to be purchased by store location and by product type. We have analyzed the risk associated with the Accounting Information System in the areas of accounts payable, accounts receivable, inventory, and payroll, identified all risks and internal control points, incorporated the controls and risks into flowcharts, designed internal controls to mitigate risks to the systems, evaluated the application of internal controls to the systems, and discussed other controls, outside the system that Kudler Fine Foods may need. Kudler’s management requested the proposed audit schedule. They were provided with the audit types that could be used for each process; the type of audit most appropriate for each process; an explanation of how the audit will be conducted, and identified events that may prevent reliance on auditing through the computer. Finally,