1. Using Computer Assisted Audit Tools and Techniques (CAATTs)
Chapter Eight
Using Computer Assisted Audit Tools and Techniques (CAATTs)

2. Two Categories of CAATTs
1) Computer Assisted Audit Tools
2) Computer Assisted Audit Techniques

3. Computer Assisted Audit Tools
Productivity Tools
Generalized Audit Software Tools

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

5. Generalized Audit Software Tools
Include:
ACL
Audit expert systems
Utility and statistical software

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

7. Computer Assisted Audit Techniques
CAATs to Validate Audit Techniques
Test desks
Integrated test facility
Parallel simulation
CAATs to Verify Data Integrity
Data extraction and analysis
Fraud detection
Continuous auditing techniques

8. 10 Steps to Using CAATs 1. Set key audit objectives
2. Identify CAATs to be used
3. Identify which data files are needed
4. Determine which format you need
5. Request files from client in preferred format
6. Import data into ACL

9. 10 Steps (Con’t) 7. Use CAATs to verify the data import process
8. Perform other CAATs
9. Investigate and reconcile exceptions
10. Document results in workpapers

10. 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