Internal Control and Risk Evaluation of Kudler Acc 542

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Internal Control and Risk Evaluation of Kudler ACC 542 4/1/2013 In this brief, the internal controls and risks evaluation of Kudler will be analyzed. The risks from Kudler’s system will be analyzed; internal controls will be designed to mitigate risks in Kudler; evaluation of internal controls will analyzed; and other controls will be recommended for Kudler that are outside of their AIS. Attached to this brief there will be extended flow charts from the “Automated Process of Accounting Information Systems” brief that will display risk and internal control points. The order of the flowcharts will be as follows: Accounts Receivable, Accounts Payable, Inventory, and Payroll. Analysis of Risks in Kudler Fine Foods There are a lot of risks that are associated with any type of business regardless of how big or small it may be. Every organization, in general, deals with some type of risk/s. Depending on the particular business and what the company does, will determine the extent to what risks a company may have or encounter. The systems that were recommended for Kudler’s AIS were the sales process, purchasing process, and production process. Considering that these processes are performed via by mailing and internet transactions through programs and emails, the risks associated with Kudler for all three processes will be outlined in the same sense. Security risk is an issue for Kudler because of their online business transactions that are done through their systems. A security risk is anything that is associated with data access and integrity. These risks can be in the form of physical or psychological. A physical access example would be if someone left their desk and forgot to log off their computer, and someone who has unauthorized access to that computer comes by and looks at emails, and other private information. The unauthorized person would

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