CAATTs

Audit Automation

Muharto, MSc, CISA,

CISSP

Background of CAATTs
Definition of CAATTs:
CAATTs (Computer-Assisted Audit Tools and Techniques) are defined as computerbased tools and techniques that permit auditors to increase their personal productivity
as well as that of the audit function.
CAATTs can significantly improve audit effectiveness and efficiency during the
planning, conduct, reporting, and follow-up phases of the audit, as well as improving
the overall management of the audit function.
- then: audit around computer
- now: audit through computer
Historical CAATTs:
- Test Decks
- Integrated Test Facility (ITF)
- System Control Audit Review File (SCARF)
- Sample Audit Review File (SARF)
- Sampling
- Parallel Simulation
- Reasonableness Tests and Exception Reporting
Audit Automation Through CAATT

Muharto, MSc, CISA, CISSP

IT Technology Use for Audit

General Software Useful for Auditors

Word Processing
Text Search and Retrieval
Reference Libraries
Spreadsheets
Presentation Software
Flowcharting
Antivirus and Firewall Software
Software Licensing Checkers
Audit Automation Through CAATT

Muharto, MSc, CISA, CISSP

IT Technology Use for Audit (Contd)

Specialized Audit Software Applications
Data Access, Analysis, Testing, and Reporting
Standardized Extractions and Reports
Information Downloaded from Mainframe
Applications and/or Client Systems
Electronic Questionnaires and Audit Programs
Control Self-Assessment
Parallel Simulation
Electronic Working Papers
Data Warehouse
Data Mining
Audit Automation Through CAATT

Muharto, MSc, CISA, CISSP

IT Technology Use for Audit (Contd)

Software for Audit Management and Administration
Audit Universe
Audit Department Management Software
E-mail
File Transfer Protocol (FTP)
Intranet
Databases
Groupware
Electronic Document Management
Electronic Audit Reports and Methodologies
Audit Scheduling, Time Reporting, and Billing
Project Management
Extensible Business Reporting Language (XBRL)
Expert Systems
Audit Early-Warning Systems
-Continuous auditing vs standard auditing
Audit Automation Through CAATT

Muharto, MSc, CISA, CISSP

CAATTs Benefit
Planning PhaseBenefits
Conduct PhaseBenefits
Data Analysis
Increased Coverage
Better Use of Auditor Resources
Improved Results
Reporting PhaseBenefits
Administration of the Audit FunctionBenefits
Reduced Costs
Increased Performance
Increased Time for Critical Thinking
Audit Automation Through CAATT

Muharto, MSc, CISA, CISSP

Examples of CAATTs Implementation

Data analysis/Interogation Tool
ACL
IDEA
SQL-based software (MS-SQL, MySQL, Oracle,
etc)
Features (espc. ACL & IDEA):
No changes to original data
keeps logs of data analysis
Accepts various source data format
Easy command/language
Scripting for automation
Complex data/table join operation
Unlimited record length
Partial read (easy for CPU & Mem)
Else?
Audit Automation Through CAATT

Muharto, MSc, CISA, CISSP