UNIT 10: Using

computer-assisted audit
tools and techniques
(CAATS)
Presented by:

Feliciano

Hipolito

Labanen

Lim

Mai

Silva
 PAPS 1009
(Computer-Assisted
Audit Techniques)
Audit productivity
software
Audit Productivity Tools
Planning and tracking the annual audit schedule using
spreadsheets, database, and project management software

Documentation and presentation using word processing,

flowcharting and graphics software.

Communication and data transfer using electronic connectivity and

a centralized server.

Resource management using online work papers review and email

Data management using database, groupware, and intranet

software
Audit productivity software
tools used by auditors that facilitate their productivity by automating
the auditing function, and reduce the amount of time they spend on
other administrative tasks. These tools include electronic working
papers, groupware, engagement management, reference libraries,
and document management
Functions of Audit Productivity
Software
Productivity Appraisal
-used as a performance measurement tool through which
timely decisions can be made to increase the
productivity of an organization.

Resource Optimization
-helps not only in efficient utilization of human and
object resources but also aids in reducing wastage.

Improvement of Hub Operations

- Increased productivity can be realized while
eliminating non-value added work from the system to
attain efficiency.
Functions of Audit Productivity
Software
Data Management
-crucial savings on time and resources are made
as long hours of singular data entry and report
extractions are eliminated.

Automation
-provides an avenue not only for consolidating
potential but also realizing higher efficiency
and productivity.
GAS tools
Computer-assisted IT
audit techniques
Validate Application Integrity
Test Data
Integrated Test Facility (ITF)
Parallel Simulation
Verify Data Integrity
Data Extraction and Analysis
Detect Fraud
Continuous Auditing Techniques
 Validate Application Integrity
TEST DATA
The test data approach uses a set of
hypothetical transactions to test the edit checks
in programs.
Auditor should use as many different exception
situations as possible.
Auditor can also use software programs called
test data generators to develop a set of test
data.
Shortcomings of Test Data

1. Possibility of accidental integration of

fictitious and actual data

2. Preparation of test data that examines

all aspects of the application is difficult

3. he auditor must make sure that the

program being tested is the one
actually used in routine processing
 Validate Application Integrity
INTEGRATED TEST FACILITY
An Integrated Test Facility (ITF) is effective in evaluating
integrated online systems and complex programming
logic.
Its purpose is to audit an AIS in an operational setting.
The auditors role is to examine results of transaction
processing to find out how well the AIS does the tasks
required of it.
 Validate Application Integrity
PARALLEL SIMULATION
With Parallel Simulation, the auditor uses live input data,
rather than test data, in a program written or controlled
by the auditor.
The auditors program simulates all or some of the
operations of the real program that is actually in use.
Auditors need complete understanding of client system
and sufficient technical knowledge.
Parallel simulation eliminates the need to prepare a set
of test data.
 System Concept of Parallel
Simulation
Master Transactions
file

Live system Simulated

system

Live Comparison Simulated

file output

Exceptions

Source: W.C. Mair, New Techniques in Computer Program

Verification, Tempo (Touche Ross & Co., Winter 1971-72), p. 14.