caats john tyrpak steve sheller philip andrews ginger bean
TRANSCRIPT
CAATsJohn Tyrpak
Steve ShellerPhilip AndrewsGinger Bean
The Difference Between CAATS and CAATTS
– CAATs are Computer Assisted Audit Techniques– CAATTs are Computer Assisted Audit Tools and
Techniques– Benefit: Now able to test 100% of data and it’s
efficient
CAATs
• Software used to increase an auditor’s personal productivity and software used to perform data extraction and analysis
• Techniques to increase the efficiency and effectiveness of audit function
Types of CAATs
• Any software that assists the auditor in performing administrative tasks more efficiently. (Word, Excel)
• Software used to manage the engagement• ACL – Audit Command Language (best-
known software)
Audit Tools with CAATs
– Productivity Tools• E Work papers• Groupware• Time and Billing Software• Reference Libraries• Document Management
– Generalized Audit Software (GAS) Tools• ACL (most common)• AuditExpert Systems• Utility Software• Statistical Software
Computer Assisted Audit ToolsProductivity Tools• E-workpapers– Creating a “paperless” workplace
• Groupware– Allows multi-user scheduling, planning, file sharing
• Time and Billing Software– Easily account for chargeable hours and prepare bills
• Reference Libraries– Efficiency in finding and reporting information
• Document Management– Online storage of documents made readily available
Computer Assisted Audit Tools
Generalized Audit Software Tools• ACL– Performs the routine tasks
• Audit Expert Systems– Based on a series of “if-then” production rules
• Statistical Analysis– Performs statistical analysis on a client’s data
file
Audit Techniques with CAATs
– Validate Application Integrity• Test Data• Integrated Test Facility (ITF)• Parallel Simulation
– Verify Data Integrity• Data Extraction and Analysis• Detect Fraud• Continuous Auditing Techniques
Ten Steps to using CAATs
– Steps 1 – 4 involve Planning– Steps 5 – 6 involve requesting and importing data– Step 7 – 9 Testing data– Step 10 – Documenting results
Planning
• Set Key Objectives• Identify CAATs• Data Needed from the Client
Data Processing
• ACL• CAATs Processes
Final Processes
• Exceptions• Document Results
Benford’s Law
• The leading digit of a series of naturally occurring numbers does not follow a uniform distribution. It will follow an exponential distribution.
• http://en.wikipedia.org/wiki/Benford%27s_law• http://www.kirix.com/blog/2008/07/22/fun-a
nd-fraud-detection-with-benfords-law/
Payroll Fraud
• Controls in Place• Getting CAATs Involved• A Fraud Discovered
Sources
• Core Concepts of Information Technology Auditing; Hunton, Bryant, Bagranoff
• http://en.wikipedia.org/wiki/Benford%27s_law• http://www.kirix.com/blog/2008/07/22/fun-a
nd-fraud-detection-with-benfords-law/• Bnet Business Network online
http://findarticles.com/p/articles/mi_m4153/is_3_58/ai_77151373/pg_1?tag=artBody;col1