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CAATs

CAATs. John Tyrpak Steve Sheller Philip Andrews Ginger Bean. The Difference Between CAATS and CAATTS. CAATs are Computer Assisted Audit Techniques CAATTs are Computer Assisted Audit Tools and Techniques Benefit: Now able to test 100% of data and it’s efficient. CAATs.

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CAATs

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  1. CAATs John Tyrpak Steve Sheller Philip Andrews Ginger Bean

  2. The Difference Between CAATS and CAATTS • CAATs are Computer Assisted Audit Techniques • CAATTs are Computer Assisted Audit Tools and Techniques • Benefit: Now able to test 100% of data and it’s efficient

  3. CAATs • Software used to increase an auditor’s personal productivity and software used to perform data extraction and analysis • Techniques to increase the efficiency and effectiveness of audit function

  4. Types of CAATs • Any software that assists the auditor in performing administrative tasks more efficiently. (Word, Excel) • Software used to manage the engagement • ACL – Audit Command Language (best-known software)

  5. Audit Tools with CAATs • Productivity Tools • E Work papers • Groupware • Time and Billing Software • Reference Libraries • Document Management • Generalized Audit Software (GAS) Tools • ACL (most common) • AuditExpert Systems • Utility Software • Statistical Software

  6. Computer Assisted Audit Tools Productivity Tools E-workpapers Creating a “paperless” workplace Groupware Allows multi-user scheduling, planning, file sharing Time and Billing Software Easily account for chargeable hours and prepare bills Reference Libraries Efficiency in finding and reporting information Document Management Online storage of documents made readily available

  7. Computer Assisted Audit Tools Generalized Audit Software Tools • ACL • Performs the routine tasks • Audit Expert Systems • Based on a series of “if-then” production rules • Statistical Analysis • Performs statistical analysis on a client’s data file

  8. Audit Techniques with CAATs • Validate Application Integrity • Test Data • Integrated Test Facility (ITF) • Parallel Simulation • Verify Data Integrity • Data Extraction and Analysis • Detect Fraud • Continuous Auditing Techniques

  9. Ten Steps to using CAATs • Steps 1 – 4 involve Planning • Steps 5 – 6 involve requesting and importing data • Step 7 – 9 Testing data • Step 10 – Documenting results

  10. Planning • Set Key Objectives • Identify CAATs • Data Needed from the Client

  11. Data Processing • ACL • CAATs Processes

  12. Final Processes • Exceptions • Document Results

  13. Benford’s Law • The leading digit of a series of naturally occurring numbers does not follow a uniform distribution. It will follow an exponential distribution. • http://en.wikipedia.org/wiki/Benford%27s_law • http://www.kirix.com/blog/2008/07/22/fun-and-fraud-detection-with-benfords-law/

  14. Payroll Fraud • Controls in Place • Getting CAATs Involved • A Fraud Discovered

  15. Sources • Core Concepts of Information Technology Auditing; Hunton, Bryant, Bagranoff • http://en.wikipedia.org/wiki/Benford%27s_law • http://www.kirix.com/blog/2008/07/22/fun-and-fraud-detection-with-benfords-law/ • Bnet Business Network online http://findarticles.com/p/articles/mi_m4153/is_3_58/ai_77151373/pg_1?tag=artBody;col1

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