Accounting Information Systems
September 06, 2010
Our firm has been working with Kudler Fine Foods for several weeks implementing a new accounting information system (AIS) that will assist with the process of payroll, inventory, accounts receivable and payables along with the daily sales. The current AIS that have been implemented will address the systems integrity and the new system will help KFF to ensure that the data is accurate and reliable for the preparation of the financial statements for the organization. Now that the new accounting information system has been set up it is now time to ...view middle of the document...
The audit will make deficiency notes and give internal reports of the findings.
The audits that will be used in the audit for KFF will be attestation and financial audit and SAS # 94 audit. The attestation and financial audit will analysis payroll, accounts receivable and payables for KFF to ensure that the financial statements are correct and the internal procedures are in compliance with the regulations. To ensure the accuracy, fairness and reliability of the financial data is prepared according to GAAP rules and regulations. The financial audit will also be used to understand the design of relevant controls and evaluate the effectiveness of the controls and the IT system.
During the attestation engage the auditor will provide assurance for which Kudler Fine Foods is responsible. The audit will need to inform KFF of the duties and the responsibility the need for maintaining the effectiveness of the internal control structure for the company. The controller or owner of KFF will be the responsible party that will make the assertion using some form of criteria. This will assertion will be done in the form of a representation letter stating that the organizations internal control structure is effective under the COSO standards. The auditor will then perform the examination, review or agreed upon procedure. After the audit the auditor will submit an Agreed-Upon Procedures (AUP) written report of the findings this is call a report to management. Normally the AUP is a negative assurance report. Stating what the auditor was required to do and the findings and/or the lack of findings with feedback to the user of the report.
Under SAS # 94 audit requires Kudler to include the information technology into the financial audit. The IT should be also included in the independent audit for assurance of the data availability, integrity and security of data. The SAS 94 is to ensure the organizational processing of electronic data. The auditor is required under SAS 94 to understand the technical aspects for the organization to ensure the understanding for the internal control, financial statements and assessment of any control risks to perform a proper analysis. This is definitely important when the company uses electronic processing...