Substantive audit procedures using CAATS

Use CAATs to
Initial procedure
-Obtain an electronic version of listing and import into audit software
-Scan the listing for unusual amounts
-Stratify account by categories/transaction type/value e.g. into local/imported items
-Using CAATS cast the schedule of the account for mathematical accuracy
Existence/occurrence
-Generate a report of unauthorized access to the Masterfile
-Consider the occurrence of the item considering exceeding the budget by approximately %
-Scan the entire Masterfile and extract reports of
-Duplicated items as there should be none Existence\occurrence
-Limit exceeded Existence
-Unreasonable items Existence
-Dates of transactions Existence
-Select a random sample of transactions from Masterfile to inspect validity of entry by requesting
management to provide with the supporting documentation
-Perform a statistical analysis to identify slow unusual/abnormal fluctuations
-Selecting a sample of inventory at year end as part of the physical verification
Completeness:
-Generate a report of unauthorized access to the system
-Consider the completeness of the item considering missing the budget by approximately %
-Scan the entire Masterfile and extract reports of
-Blank fields Completeness
-Any breaks in sequence Completeness
-Run a comparison of approved listing/items and filter out items that appear on the approved
listing/accounts and not of the list/accounts to identify possible transactions that have taken place
but have not been recorded
-Select a sample of invoices and trace them to Masterfile transactions to inspect that they are
recorded Completeness
Obtain a total amount of individual entries in a day book in a particular period and then agree
this total amount to the amount posted in ledger control
Cast all accounts receivable and inventory amounts from the interface reconciliations and
agree this to the balance in the financial statements
Valuation
-Generate a report of unauthorized access to the system
-With the underlying contracts/invoices, agree the following details to the database:
-Activation date of policy
-Premium payable
-The contract is signed by the policyholder
-Scan the entire Masterfile and extracts reports of:
-Debit\credit balances Valuation
-Unreasonable items Valuation
-Extract report of balances for manual comparison
Analysis of the ageing of items ledger to determine whether there should be a write down
Select a random sample of transactions from Masterfile to inspect the accuracy of transaction
recording with respect to supporting documentation Valuation
Analyze the Masterfile by extracting

o Prices
o Inventory quantities
o Costs
o Dates
o Balances
o Independent information. E.g. exchange rates
And inspect that they are the same as those used by management
Re-perform the calculation Valuation
Inventory specific: Scan the entire Masterfile and extracts reports of
o Negative quantitates Valuation
o Analysis of the ageing of items in the inventory ledger
o Selecting a sample of sales invoices for checking to dispatch documentation
o Selecting a sample of inventory at year end as part of the physical verification
Cut-off
-Extract a listing of any entries with a date of after year end as there should be none included in
the transaction file