In addition to the audit plan for the analyzed processes, of Kudler Fine Foods, encouragement of ways to improve audit documentation and process, by using computer technology was addressed to Kudler’s management team. As a result, Kudler Fine Foods management team is considering incorporating proposed computer assisted auditing techniques (CAATs) within its systems. CAATs will increase efficiency levels of an auditor’s personal productivity during analysis and data extraction of the audit which is beneficial to the performance of Kudler.
CAAT will also service as a validation agent providing assurance of data integrity and reliability to the operations of Kudler Fine Foods for its users. CAAT surfaces inconsistencies that can be verified timely. Recommendations The implementation of industry specific accounting software at Kudler Fine Foods was recommended that would track inventory needs more efficiently as the company was experiencing excessive spoilage of perishable inventory which was the streamline to profitability.
The new system managed inventory by automation, POS, and accounts payable/receivable functionalities thus saving money and assisted with better forecasting methods of inventory maintenance. IT audit were evaluated to assist the system’s internal and external control designs based on the infrastructure of Kudler’s needs as well as adhering to compliance of standards and procedures. For manageability of productivity, CAATs software recommendations were expressed to management for movement away from manual auditing processes as reassurance of more reliable data.
Recent implementation of accounting software introduced and Information Technology (IT) audits that assist with internal controls for Kudler Fine Foods, reviews and recommendations were assessed. Audit documentation and process may be improved, through the utilization of computer technology for this organization were analyzed. In preview of Kudler’s operations, acquiring and exercising appropriate computer auditing techniques parallel with accounting software will assist in completion of Kudler’s business plans and goals.
Implementation of computer auditing techniques and systems, hoist to Kudler’s management team in past weeks briefings; can resolve issues that hindered profitability and performance of the company. Further expression of auditing links of selected computer assisted auditing techniques used to validate data integrity, functions of audit productivity, and how audit productivity software will be used within systems will ensure reliability, manageability, accuracy, and integrity of data. Auditing Techniques Productivity tools include any software that assists the auditor in performing administrative tasks more efficiently” based upon the needs of the company (Bagranoff, 2008, pg. 179). Such tools will enable Kudler’s management team and company the ability to extract sufficient and dependable data sources more effectively in opposition of manual processing points done so previously. The ISACA Standards Board issued Guideline 70 that “provides guidance in the areas of CAATs planning, execution, documentation, and reporting” (Bagranoff, 2008, pg 185).
Incorporation of CAATs software increases efficiency levels of an auditor’s personal productivity during analysis and data extraction of the audit involving an array of data information. CAATs software allows auditors to investigate, examine, and reconcile trends that are “useful evidence to support predefined audit objectives” (Bagranoff, 2008, pg. 184). Recommendations of techniques are outlined below for Kudler Fine Foods that test controls, sample items, and validate applications for intentional or unintentional conceding (Bagranoff, 2008, pg. 88). Types of CAATs include: ? Generalized Audit Software (GAS) – allows the auditor to perform tests on computer files and databases. ?Custom Audit Software (CAS) – generally written by auditors for specific audit tasks. CAS is necessary when the organization’s computer system is not compatible with the auditor’s GAS or when the auditor wants to conduct some testing that may not be possible with the GAS. ?Test Data – the auditor uses test data for testing the application controls in the client’s computer programs.
The auditor includes simulated valid and invalid test data, used to test the accuracy of the computer system’s operations. This technique can be used to check data validation controls and error detection routines, processing logic controls, and arithmetic calculations, to name a few. ?Parallel Simulation – the auditor must construct a computer simulation that mimics the client’s production programs. ?Integrated Test Facility – the auditor enters test data along with actual data in a normal application run (Pogrob, K. & Isenberg, G. , 1999).
Audit Productivity Tasks advantages provided through audit software tools with similarities to that of CAATs such as Computer Associates’ Advantage CA Easytrieve, and Interactive Data Extraction and Analysis (IDEA) grant auditors speed and time for data confirmation as well as reduction in errors or inconsistency. Adding simplicity to complex analyzing data through CAATs, brings forth to auditors the capability to attain documented proof to “support their final conclusions developed on the audit” (Pogrob, K. & Isenberg, G. , 1999).
It is pertinent to gather relevant and useful audit evidence in relation to information system through inquiry, inspection, re-performance, and monitoring, in order to formulate opinions conducive of the auditor’s findings. Thus, improved data through CAATs will provide Kudler’s management with consistent and credible data resources. As Kudler Fine Foods progress towards expansion of its operations “of increased reliability and more timely information, continuous auditing techniques will become a commonplace”, therefore audit productivity software is imperative to maintaining competitiveness (Bagranoff, 2008, pg. 01). Integrating audit productivity software in Kudler’s design maximizes productivity in common features of the software such as: •Populate report templates and risk assessments •Generate risk analysis and business cycle analysis •Details in scheduling •Storage of data (Bagranoff, 2008, pg. 181). Such features can extend Kudler’s audit process that will in turn improve internal audits. Further, the business expectations of Kudler’s management team are met in relation to heightened profits by decreasing spoilage at viable and economical pricing.
References: Pogrob, K. & Isenberg, G. (1999). Accountants corner: Auditing in a paperless society. Retrieved on the World Wide Web at: http://findarticles. com/p/articles/mi_qa5352/is_199911/ai_n21446282/pg_2/ Bagranoff, N. A. , Simkin, M. G. , & Strand Norman, C. (2008). Core concepts of accounting information system (10th ed. ). NY: Wiley. Hunton, J. E. , Bryant, S. M. , & Bagranoff, N. A. (2004). Core concepts of information technology auditing. Hoboken, NJ: Wiley.