Chapter Eight - PowerPoint PPT Presentation

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Chapter Eight

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Time and billing software. Reference libraries. Document management ... Utility and statistical software. ACL. Widely used for data extraction and analysis ... – PowerPoint PPT presentation

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Title: Chapter Eight


1
Chapter Eight
  • Using Computer Assisted Audit Tools and
    Techniques (CAATTs)

2
Two Categories of CAATTs
  • 1) Computer Assisted Audit Tools
  • 2) Computer Assisted Audit Techniques

3
Computer Assisted Audit Tools
  • Productivity Tools
  • Generalized Audit Software Tools

4
Productivity Tools
  • Include
  • E-workpapers
  • Groupware
  • Time and billing software
  • Reference libraries
  • Document management

5
Generalized Audit Software Tools
  • Include
  • ACL
  • Audit expert systems
  • Utility and statistical software

6
ACL
  • Widely used for data extraction and analysis
  • Allows for virtual 100 testing of client data

7
Computer Assisted Audit Techniques
  • CAATs to Validate Audit Techniques
  • Test desks
  • Integrated test facility
  • Parallel simulation
  • CAATs to Verify Data Integrity
  • Data extraction and analysis
  • Fraud detection
  • Continuous auditing techniques

8
10 Steps to Using CAATs
  • 1. Set key audit objectives
  • 2. Identify CAATs to be used
  • 3. Identify which data files are needed
  • 4. Determine which format you need
  • 5. Request files from client in preferred format
  • 6. Import data into ACL

9
10 Steps (Cont)
  • 7. Use CAATs to verify the data import process
  • 8. Perform other CAATs
  • 9. Investigate and reconcile exceptions
  • 10. Document results in workpapers

10
CAATs to Detect Fraud
  • Digital analysis
  • Benfords Law for a series of naturally occurring
    numbers
  • Deals with expected frequency of first digits
  • Exponential distribution
  • Requires large sample size
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