Kudler System Integrity & Validation

In: Business and Management

Submitted By kimmer00831
Words 1201
Pages 5
System Integrity & Validation
Kimberly Miller
ACC 542
February 27, 2012
Melissa Frey

Kudler Fine Foods (Kudler) is an upscale specialty food store. They have had remarkable success since their first store opened in 1998, opening a second store in 2000 and a third in 2003. Kudler’s success is dependent on their business model as well as an effective accounting information system (AIS). The current system is strong but could be enhanced to build productivity and profitability.
Over the course of the last five weeks the following recommendations have been made to Kudler’s management team to make improvements to their existing system. Implementation of industry-specific software to improve the current AR, AP, inventory and payroll processes as well as developing new processes for sales and general ledger functions. The value-added and automation of the processes improves accuracy, eliminates double entry and allows for communication between locations. Refine the existing database with the use of flowcharts and ER diagrams to understand the flow of data and move away from broad spreadsheet reports and instead use pivot tables which will provide a summary of data useful for decision-making. Maintain, review, update, and test, policies and procedures, by means of developing good internal controls and auditing them regularly.
The following brief will indicate how Kudler will also benefit from audit software and computer assisted auditing techniques (CAATs) to validate their system’s data integrity.

Kudler Fine Foods (Kudler) recently upgraded their system software to be more industry-specific. Reliance on computers for accounting purposes is becoming more and more common as they are an essential tool in business. With that being said, it is imperative that management consider the validity of data and the integrity within…...

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