System Integrity And Validation Of A Fine Foods

As Patricia has given café managers autonomy to manage their bistro, she computerised the financial report system and audit visits have been minimised. Information management’s purpose is to gather information and based on this information decisions are made.

Kudler Fine Food should have written procedures and policies for everything, starting from work procedures to locking up the store. Kudler Fine Food does not have a written policy security of Finance and Accounting Systems, but it is recommended to written document. There should be a document of security features embedded by the software provider, including names of people with limited access and dollar limits. In addition, passwords

Kudler policies and procedures will be reviewed using a risk-base audit approach. Attribute sampling technique will test internal controls of the POS System Observed sales transaction made at each store. Using the variable sampling technique, financial report from REMS system and bank statements obtained from the bank will be compared to Kudler 's bank reconciliation reports. After the evidence is gathered and reviewed an overall audit opinion will be given to determine if objectives were met and whether procedures were sufficient.

The audit team focused on preforming groundwork analytical procedures. A comparison of the performance of Smackey’s Dog Foods Inc to other similar industries was used to validate the original assessment of the risks. Performing the procedures helped detect areas that pose a high risk of the material misstatements. Another important part of the planning of the audit was to set a balance of materiality that is appropriate. The situations that

By: Trottman-Adewumi, Yolanda; Kelley, David; Smuglin, Len; Markovich, Gregory. Journal of Securities Operations & Custody.Autumn/Fall 2017, Vol. 9 Issue 4, p302-312. 11p. , Database: Business Source Complete

There are four stages in this audit. The first stage is the planning and risk assessment. This stage of the audit is completed during the initial planning. The risks for Smackey Dog Foods, Inc. can be better identified by understanding the business, its industry, environment, management culture, the type of accounting used, and the competition. The auditors should be able to understand why Smackey’s sales are steadily increasing and its competitors sales are declining. To be more specific, the implementation and design of Smackey’s internal control procedures, processes, and systems are studied and analyzed for the audit team to be able to assess the control risk for each of the transaction related audit objectives, which are accuracy, occurrence, classification, completeness, summarization, and timing and posting.

There are several different types of system software used at Kudler for managing their accounting and HR functions. Kudler is using an external company to handle their finacial data. Earnest Young Consulting was contracted to install an retail management system for Kudler. After the install was done for each store Kudler kept Earnest Young Consulting for maintainence on the system. The system can track all aspects of the Kudler Fine Foods expenses, receivables, HR functions, payroll, benefits, and employee information. While the company uses some advanced technology for some of the areas, they still need more coverage. In the retail division, the managers are storing personal employee and company information in the store computer. The store managers then have to send the information to HR for entry in the main database. This cost to administrate this could be less if Kudler would allow the store managers access to the database, which would eliminate lost information and possible stolen data. Computer in each store would eliminate a paper trail in the store, and each store would not have to store paper files.

a. Based on an analysis of sales, total assets, and pretax net income, an amount of $70,000 will be used as a measure of planning materiality.

Kudler Fines Foods founded in 1998 and is growing rapidly. When they open their first store, Microsoft Access was selected as the database to track inventory, orders, and customers. The products, they sold are perishable and inventory must be properly tracked. Kudler excessive inventory is always a concern. This paper will evaluate database tables from accounting perspective, provide recommendation for improvement and create pivot table to help Kudler's management to improve decision making process.

Information technology (IT) has become increasingly sophisticated and complex, escalating the ongoing change within Kudler Fine Foods. As IT information is adopted within the organization, automation controls many processes within the Kudler’s environment. As Kudler has become more virtualized, a need for increased trust and assurance in the relationships with consumers, partners and suppliers. The swell of e-commerce business has created new ways of conducting an audit. Statement on Auditing Standard 94 (SAS 94) requires that the auditor understands the technological aspect of the organization in order to grasp the internal controls and the assessment of control risks for a proper audit

Kudler Fine Foods is in search of a new accounting system to help run the corporation faster and more efficiently for its clients, employees, and

In this brief, data tables will be analyzed because it can be critical to the accounting cycle. With accurate data that is informing, Kudler Fine Foods ought to be able to make more practical business decisions. With Kudler Fine Foods using data table to order, keep inventory, and to process their products, they can become more successful and on top of the food industry. As a company, Kudler needs to evaluate their design elements of the data tables that are needed for review from an accounting perspective. An entity relationship program would need to be developed showing the past data tables. A recommendation would need to be met for improvements or

Another aspect relevant to the information technology is the system-generated data and reports. If auditors choose a control that uses some information generated from the company’s internal IT system, the effectiveness of the control requires obtaining audit evidence of the accuracy and completeness of the internal information. In the ZOU’s case, when testing of the controls over risk #2, auditors use reports, which are automatically generated by the Warehouse K system. Auditors decide to further test the controls over accuracy and completeness. When testing the controls over risk #3, both monthly reporting package and budget information are somewhat generated internally by ZOU’s internal system. Depending on different systems, auditors decide to further test controls for accuracy and completeness with respect to the monthly reporting package, which is generated from PeopleSoft.

As you know, our company has been audit Movies R US for eight years, and it is a public company. Now Movies R US wants to change almost all its business model, from DVD rental into online movies download. This means this client needs new IT department to maintain its download application; it needs to dispose of inventories, because Movies R US decided to close 40 of their 50 stores. This new situation will force us to change our traditional audit process. Since this public company decided to reform its business model, the financial statement’s users will be more dependent on audit report we provide to them. Therefore, our auditors need more investigation for this client. As I mentioned before, Movies R US is one of our old clients, we know this company. But we still need in-depth investigating its new business model, controls and risks. In the final, we might have to change our audit report due to the brand new investigation result.

This article initiates with the introduction on what is audit planning. It basically addresses the audit plan strategy of K & S Corporation limited’s Financial Statements. Being an external auditor of the company, key factors to be considered in auditing the financials of the subject company have been discussed in the article. The most significant accounts at risk being materially misstated have been critically examined citing the possible risks associated with such accounts. Last but not the least, the article concludes with recommendations with respect to audit assessment plan of the company. Hence, this article seeks to act as a ready reckoner guide for an audit manager in audit planning of K & S Corporation Limited.