Kudler Fine Foods

CAAT INTRODUCTION AND GUIDELINES

CAAT also known as Computer assisted Audit technique. The CAAT involves using software, applications, extract and analyze data, trends within data, identify expectations, detention of potential fraud within data etc. At present many CAAT tools are available and the customers can select different CAAT depending upon the requirements of their business needs. The popular CAAT software is ACL Audit Command Language, IDEA analysis, WizRule etc. When the CAAT is established, the guidelines for all IS Audits are applicable and must be adhered from 1st December, 1998.

FUNCTIONS

Using the CAAT the audit documentation and processes can be improved with quality and speed. The selected CAAT will be controlled by the IS auditor and will be able to provide reasonable assurance so that audit objectives and specifications of the CAAT have been met. In this connection the IS Auditor should perform a reconciliation of control totals if necessary, review output for reasonableness, perform a review of the logic and other characteristics of the CAAT, Review the organization’s general IS controls in connection with CAAT etc.

By using the CAAT tools, the Auditor will be able to review, test and analyze the entire data which is not possible with manual data testing techniques. Several benefits attached with CAAT tools which includes recalculating/verifying balances, testing compliance with standards, Aging analysis in connection with receivables and payables, To identify the issues, Testing duplicates within data, testing gaps in invoice numbers etc. In fact, CAAT enhances the productivity of auditors and the auditors able to make informed decisions in connection with financial statement errors. The analyzed data through CAAT will give high level comfort to the senior management so that overall quality of the data within the organization can be identified.

The CAAT is involves use of computers for audit work. In this connection test data and audit...