Automated Tools & Techniques

Question 1

What are the three main types of CAAT (computer-assisted audit techniques)

Answer 1

Audit program / Audit software
Test data
Embedded test facilities

Question 2

What are audit programs/audit software used for

Answer 2

To examine and interrogate clients accounting data. The auditor will have a program which can read the client files. That program can be used for the following:

Select a sample of transactions to investigate

The sample could be automatically stratified

The program might be set to identify transactions or balances

It could also re-perform calculations

Question 3

What is test used for

Answer 3

Test data is used to investigate the operations of client programs. The auditor design is Dummy data that is processed by the clients programs. This enables the auditor to check whether or not the clients programs are operating correctly and as expected. Also a text to ensure that the controls which was supposed to be present are actually operating

Question 4

What is embedded audit facilities

Answer 4

Integrated test facilities or system control and review file (scarf) arepermanent audit modules within the accounting system. During the accounting period certain transactions are also recorded in these files for late examination by the audit.

Question 5

What are the characteristics of Big Data

Answer 5

Volume-will be vast

Variety-nonuniform/unstructured

Velocity-fast and continuous

Veracity-how true or accurate is the data?