Summarizing inventory turnover statistics for excess or obsolescence analysis ■ Resequencing

inventory items by location to facilitate physical observations ■ Comparing data obtained through
other audit procedures with IT system data fi les. Audit evidence gathered manually can be
converted to a machine‐readable form and compared to other data fi les. Examples are: ■ Inventory
test counts with perpetual records ■ Creditor statements with accounts payable fi les Although
many of these were originally developed for external auditors and date from before the days of
integrated database fi les, these techniques are generally still applicable for internal auditors. The
number and sophistication of these CAATTs increases as the individual internal auditor becomes
more experienced in their use. 11.6 STEPS TO BUILDING EFFECTIVE CAATTs Internal auditors should
follow the same approach for developing CAATTs whether using a report generator retrieval
language or downloaded data to an auditor’s laptop computer. This approach is similar to the
systems development methodology approach discussed in Chapter 22 . The difference here is that
an internal auditor may develop a CAATT for a onetime or limited‐use effort rather than for an
ongoing production application. Because internal audit often draws conclusions and makes rather
signifi - cant recommendations based on the results of a CAATT, it is important to use good systems
development practices to design and test CAATTs. The following is a four‐step approach to develop a
CAATT: 1. Determine the objectives of the computer‐assisted audit tool. It is not suffi cient for
internal audit just to audit the automated accounting system. All too often an internal audit manager
will just direct a staff auditor to write a CAATT for some audit without fully defi ning its objectives.
The desired audit objectives should be clearly defi ned; this will make the subsequent identifi cation
of testing procedures a much easier task. Once internal audit has defi ned a CAATT’s objectives, fi le
layouts and systems fl owcharts should be obtained to select the appropriate data sources for
testing. Sometimes, an internal auditor at this point encounters technical problems that might
impede further progress. A CAATT documentation fi le or workpaper should also be started along
with this step

Summarizing inventory turnover statistics for excess or obsolescence analysis ■ Resequencing

inventory items by location to facilitate physical observations ■ Comparing data obtained through
other audit procedures with IT system data fi les. Audit evidence gathered manually can be
converted to a machine‐readable form and compared to other data fi les. Examples are: ■ Inventory
test counts with perpetual records ■ Creditor statements with accounts payable fi les Although
many of these were originally developed for external auditors and date from before the days of
integrated database fi les, these techniques are generally still applicable for internal auditors. The
number and sophistication of these CAATTs increases as the individual internal auditor becomes
more experienced in their use. 11.6 STEPS TO BUILDING EFFECTIVE CAATTs Internal auditors should
follow the same approach for developing CAATTs whether using a report generator retrieval
language or downloaded data to an auditor’s laptop computer. This approach is similar to the
systems development methodology approach discussed in Chapter 22 . The difference here is that
an internal auditor may develop a CAATT for a onetime or limited‐use effort rather than for an
ongoing production application. Because internal audit often draws conclusions and makes rather
signifi - cant recommendations based on the results of a CAATT, it is important to use good systems
development practices to design and test CAATTs. The following is a four‐step approach to develop a
CAATT: 1. Determine the objectives of the computer‐assisted audit tool. It is not suffi cient for
internal audit just to audit the automated accounting system. All too often an internal audit manager
will just direct a staff auditor to write a CAATT for some audit without fully defi ning its objectives.
The desired audit objectives should be clearly defi ned; this will make the subsequent identifi cation
of testing procedures a much easier task. Once internal audit has defi ned a CAATT’s objectives, fi le
layouts and systems fl owcharts should be obtained to select the appropriate data sources for
testing. Sometimes, an internal auditor at this point encounters technical problems that might
impede further progress. A CAATT documentation fi le or workpaper should also be started along
with this step

Summarizing inventory turnover statistics for excess or obsolescence analysis ■ Resequencing

inventory items by location to facilitate physical observations ■ Comparing data obtained through
other audit procedures with IT system data fi les. Audit evidence gathered manually can be
converted to a machine‐readable form and compared to other data fi les. Examples are: ■ Inventory
test counts with perpetual records ■ Creditor statements with accounts payable fi les Although
many of these were originally developed for external auditors and date from before the days of
integrated database fi les, these techniques are generally still applicable for internal auditors. The
number and sophistication of these CAATTs increases as the individual internal auditor becomes
more experienced in their use. 11.6 STEPS TO BUILDING EFFECTIVE CAATTs Internal auditors should
follow the same approach for developing CAATTs whether using a report generator retrieval
language or downloaded data to an auditor’s laptop computer. This approach is similar to the
systems development methodology approach discussed in Chapter 22 . The difference here is that
an internal auditor may develop a CAATT for a onetime or limited‐use effort rather than for an
ongoing production application. Because internal audit often draws conclusions and makes rather
signifi - cant recommendations based on the results of a CAATT, it is important to use good systems
development practices to design and test CAATTs. The following is a four‐step approach to develop a
CAATT: 1. Determine the objectives of the computer‐assisted audit tool. It is not suffi cient for
internal audit just to audit the automated accounting system. All too often an internal audit manager
will just direct a staff auditor to write a CAATT for some audit without fully defi ning its objectives.
The desired audit objectives should be clearly defi ned; this will make the subsequent identifi cation
of testing procedures a much easier task. Once internal audit has defi ned a CAATT’s objectives, fi le
layouts and systems fl owcharts should be obtained to select the appropriate data sources for
testing. Sometimes, an internal auditor at this point encounters technical problems that might
impede further progress. A CAATT documentation fi le or workpaper should also be started along
with this step