Computer Assisted Audit Tools

Computer Assisted Audit Tools

Examine computer-assisted tools and techniques for the auditing process to examine effective controls.

The advancements in computer technology have made it easier for auditors to perform their duties. This is by providing them with tools that have made the audit process more efficient. These tools are referred to as Computer Assisted Audit Tools or CAATs for short. In today’s work environments, auditors have to work with digital systems and records continually. This is because many businesses have moved away from the cumbersome paper records and processes that characterized the past offices. Electronic and digital records are now the norm meaning that auditors have had to adapt to this change as well. Computer-assisted audit tools have, therefore, become integral tools for auditors in today’s business environments.

Several different CAAT tools are at the disposal of auditors in their work, with the two main being the audit software and test data systems. Audit software is mainly used to test or interrogate the client’s system. This software test the correct working of the client’s systems as well as the integrity of the digital records stored. The other technique is the use of test data where auditors feed the client’s systems with dummy data to test if the system correctly processes it and if it gives the appropriate output. The test data contains both correct data and data with errors to ensure the effective testing of the application controls within the client’s system. Although these tools are essential in assisting the auditors in their work, it is worth noting that they are, however, not replacements for the auditor’s own testing procedures.

How do these tools help IT managers maintain systems operations?

The use of computer-assisted tools in the audit process helps IT managers in a significant way as they ensure and maintain adequate system operations. The considerable benefits of these audit tools to the business include:

1. CAATs increase the productivity of the system because the auditors or IT managers can complete routine audit tasks faster. This improves the effectiveness and consistency of the systems and frees up time for the managers to focus on more significant issues.
2. Computers assisted tools reduce the cost of the audit process as they automate the process making it more efficient and cost-effective.
3. The tools enable IT managers to effectively maintain their systems operations without the need to add more personnel.
4. CAATs facilitate the completion of auditing tasks that may be impossible or impractical to do manually, such as auditing of large volumes of data.
5. Audit software has the added advantage of being able to generate computer simulations and models for extensive testing of the organization’s systems.

How do the tools and techniques support the internal and external auditing process?

A complete audit process involves both an internal investigation by the IT manager or an in-house auditor as well as an external evaluation by an external auditor. This is to limit bias and improve the accuracy of the audit process. Computer-assisted auditing tools have made these two processes possible by providing both sets of auditors with the tools required to conduct their work. A range of open-source CAAT software is available for internal auditors. This open-source software can be customized to fit the organization hence improving the accuracy and integrity of the audit process. On the other hand, the external auditors have access to a range of proprietary CAAT software that performs the audit process to the levels and standards of the auditing company.