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ACG 5458 Chapter 8

ACG 5458 Chapter 8. Productivity Tools. Include: E-workpapers Groupware Time and billing software Reference libraries Document management. Electronic Working Papers. Many smaller CPA firms use Microsoft Word, Excel, Access and Outlook Express Others use specialty-type software

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ACG 5458 Chapter 8

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  1. ACG 5458 Chapter 8

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

  3. Electronic Working Papers • Many smaller CPA firms use Microsoft Word, Excel, Access and Outlook Express • Others use specialty-type software • CaseWare Working Papers • CCH ProSystem fx • D&T Intacct Audit • PWC TeamMate • Big 4 have proprietary software

  4. Electronic Working Papers Key Features • Import client’s raw data • Generate working papers and references • Export information to other formats • Drill down • Enter AJEs • Break down accounts into subcomponents • Create consolidated financial statements • Map from lead to detailed schedules • Populate report templates and risk assessments • Calculate predefined ratio and performance measures • Compare versions of documents and highlight • Generate risk analysis and business cycle analysis

  5. Groupware • Facilitate sharing of information – Calendar, scheduling, and file sharing • Lotus Notes • Novell GroupWise • MS Exchange

  6. Time & Billing Record and manage time and billing • Timeslips • Prosystem fx Practice

  7. Reference Libraries Authoritative literature Company-specific policies and procedures

  8. Document Management Document storage and retrieval systems CSI FileCabinet Intuit Workspace Pro

  9. Generalized Audit Software Tools • Include: • ACL and Idea • Audit expert systems • Utility and statistical software

  10. ACL • Widely used for data extraction and analysis • Allows for virtual 100% testing of client data

  11. Audit Expert Systems • Audit planning, risk assessments, materiality, and controls evaluation • If/then rules • Returns answer based on inputs • Advantages • Unbiased, captures expertise, always available • Disadvantages • Difficult to develop

  12. Computer Assisted Audit Techniques • Testing client’s controls (Assess control risk) • Test data (or test decks) • Parallel simulation • Integrated test facility • Testing client’s data (Substantive testing) • Data extraction and analysis (e.g., ACL) • Fraud detection (e.g., ACL) • Continuous auditing techniques

  13. CAATs to Detect Fraud • Digital analysis • Benford’s 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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