Computer-aided audit tools: Difference between revisions

Revision as of 15:32, 22 February 2018

Latest revision as of 00:18, 10 November 2024

(46 intermediate revisions by 26 users not shown)

Line 1:

{{Short description|Data analysis software}}

{{Essay-like|article|date=August 2009}}

{{Multiple issues|

'''Computer-assisted audit techniques''' (CAATs) or '''computer-assisted audit tools and techniques''' (CAATTs) is a growing field within the IT audit profession. CAATs is the practice of using computers to automate the IT audit processes. CAATs normally includes using basic office [[productivity software]] such as [[spreadsheet]], [[word processors]] and text editing programs and more advanced software packages involving use [[statistical analysis]] and [[business intelligence]] tools. But also more dedicated [[#Specialized software|specialized software]] are available (see below).

{{Essay-like|article|date=August 2009}}

{{Cleanup rewrite|date=December 2023}}

}}

'''Computer-assisted audit techniquestool''' (CAATs) or '''computer-assisted audit tools and techniques''' (CAATTs) is a growing field within the IT audit profession. CAATs is the practice of using computers to automate the IT audit processes. CAATs normally includesinclude using basic office [[productivity software]] such as [[spreadsheet|spreadsheets]], [[word processors]] and text editing programs and more advanced software packages involving use [[statistical analysis]] and [[business intelligence]] tools. But also more dedicated [[#Specialized software|specialized software]] are available (see below).

CAATs have become synonymous with [[data analytics]] in the audit process.

Line 12 ⟶ 16:

===CAATTs alternative===

CAATTs, not CAATs, addresses these problems. CAATTs, as it is commonly used, is the practice of analyzing large volumes of data looking for anomalies. A well -designed CAATTs audit will not be a sample, but rather a complete review of all transactions. Using CAATTs the auditor will extract every transaction the business unit performed during the period reviewed. The auditor will then test that data to determine if there are any problems in the data.

===Traditional audit vs CAATTs on specific risks===

Another advantage of CAATTs is that it allows auditors to test for specific risks. For example, an insurance company may want to ensure that it doesn't pay any claims after a policy is terminated. Using traditional audit techniques this risk would be very difficult to test. The auditor would "randomly select" a "statistically valid" sample of claims (usually e if any of those claims were processed after a policy was terminated). Since the insurance company might process millions of claims the odds that any of those 30–50 "randomly selected" claims occurred after the policy was terminated is extremely unlikely.

Using CAATTs the auditor can select every claim that had a date of service after the policy termination date. The auditor then can determine if any claims were inappropriately paid. If they were, the auditor can then figure out why the controls to prevent this failedfailure. In a real -life audit, the CAATTs auditor noted that a number ofseveral claims had been paid after policies were terminated. Using CAATTs the auditor was able to identify every claim that was paid and the exact dollar amount incorrectly paid by the insurance company. Furthermore, the auditor was able to identify the reason why these claims were paid. The reason why they were paid was because the participant paid their premium. The insurance company, having received a payment, paid the claims. Then after paying the claim the participant's check bounced. When the check bounced, the participant's policy was retrospectively terminated, but the claim was still paid costing the company hundreds of thousands of dollars per year.

Which looks better in an audit report:

Line 28 ⟶ 32:

"Audit used CAATTs and tested every transaction over the past year. We noted XXX exceptions wherein the company paid YYY dollars on terminated policies."

However, the CAATTs driven review is limited only to the data saved on files in accordance with a systematic pattern. Much data is never documented this way. In addition saved data often contains deficiencies, is poorly classified, is not easy to get, and it might be hard to become convinced about its integrity. So, for the present CAATTs is a complement to an auditor's tools and techniques. In certain audits, CAATTs can't be used at all. But there are also audits whichthat simply can't be made with due care and efficiently without CAATTs.

==Specialized software==

Line 54 ⟶ 58:

===CAATs Courses===

CAATs isare the fundamental tool whichthat is used by the auditors. This tool facilitates them to make search from the irregularities from the given data. With the help of this tool, the auditors and accountantaccountants of any firm will be able to provide more analytical results. These tools are used throughout every business environment and also in the industry sectors too. With the help of computer-assisted audit techniques, more forensic accounting with more analysis can be done. It’s really a helpful tool that helps the firm auditor to work in an efficient and productive manner. Working with the CAATs, it is essential for the accountant or the auditor to select the right data, the selection process is very much tricky, and you need to be professional for it. After selecting the right data, import that to the CAATs, now the tool will automatically generate the analytical data. This tool really contributes to the efficiency of the auditors. The fundamental course outline <ref>International Computer Auditing Education Association (ICAEA), "CAATs (Computer Assisted Audit Techniques) Courses", {{cite web |url=http://www.iacae.org/English/Training/CAATs_Courses.php |title=Archived copyICAEA--Training |accessdate=2015-02-26 |deadurlurl-status=yesdead |archiveurl=https://web.archive.org/web/20150205182521/http://www.iacae.org/English/Training/CAATs_Courses.php |archivedate=2015-02-05 |df= }}</ref> include:

* Computer Auditing Overview

* Legal and Ethical Issues for Computer Auditors

Line 66 ⟶ 70:

===CAATs Certification Program===

There are several certification programs from various CAATs vendors and professional associations as the following:

# International Certified CAATs Practitioner ([https://archive.istoday/20150227044811/http://www.iacae.org/English/Certification/Certification.php ICCP]): established by the International Computer Auditing Education Association (ICAEA).

# ACL™ Certified Data Analyst ([https://web.archive.org/web/20150216105709/http://www.acl.com/services/acl-training-services/acda-certification-examination-experience/ ACDA]): established by ACL Services Ltd.

# Certified IDEA Data Analyst ([http://www.casewareanalytics.com/certification CIDA]): established by CaseWare Analytics.

# Jacksoft Certified CAATs Practitioner ([https://web.archive.org/web/20150226182631/http://www.jacksoft.com.tw/English/product/training.php JCCP]): established by Jacksoft Commerce Automation Ltd.

Line 77 ⟶ 81:

===Creation of electronic work papers===

Keeping electronic work papers on a centralized audit file or database will allow the auditor to navigate through current and archived working papers with ease. The database will make it easier for auditors to coordinate current audits and ensure they consider findings from prior or related projects. Additionally, the auditor will be able to electronically standardize audit forms and formats, which can improve both the quality and consistency of the audit working papers.'''

===Fraud detection===

CAATs providesprovide auditors with tools that can identify unexpected or unexplained patterns in data that may indicate fraud. Whether the CAATs is simple or complex, data analysis provides many benefits in the prevention and detection of fraud.

CAATs can assist the auditor in detecting fraud by performing and creating the following,

Line 100 ⟶ 104:

CAATTs and CAATs are used interchangeably. While CAATs has emerged as the more common spelling, CAATTs is the more precise acronym. The acronym CAATTs solves one of the two problems with defining the acronym. CAATs means:

'''C'''omputer '''A'''ided (or '''A'''ssisted) '''A'''udit '''T'''echniques (or '''T'''ools and '''T'''echniques)

The first "A" and the "T" can have two different meanings depending on who uses the term. By using the term CAATTs, one is clearly incorporating both "Tools" AND "Techniques."

Line 115 ⟶ 119:

! OS

! [[Software license]]

! [[Open-source software|Open source]]

! Comments

|-

| [[Arbutus Analyzer]] || Arbutus Software || 67.1000 || 20172021-0305-31 || [[Windows]] || {{Nonfree|[[Proprietary software|Proprietary]] [[Commercial software|commercial]]}} || {{No}} ||

|-

| [[Audit Command Language]] (ACL) || ACL Services Ltd.Galvanize || 1115.40 || 20152020-1110-0131 || [[Windows]] || {{Nonfree|[[Proprietary software|Proprietary]] [[Commercial software|commercial]]}} || {{No}} ||Starting 2014 provide a free Excel add-in

|-

| [[Easy2Analyse]] || QDAC.net. || 4.3 || 2015-05-15 || [[Windows]] || {{Nonfree|[[Proprietary software|Proprietary]] [[Commercial software|commercial]]}} || {{No}} ||Available in full and auditfiles version

|-

| ESKORTIntrasoft Audit Support Computer Audit (Formerly known as ESKORT / SESAM) || Intrasoft International Scandinavia A/S || 7.85<ref name="sesam78">{{cite web | title=SESAMIntrasoft COMPLIANCE Audit Support 7.80 | url=httphttps://wwwcompliance.linkedinintrasoft-intl.com/company/intrasoft-international-scandinavia-a-s | date=20132021-0309-0602 | accessdate= 20142021-0309-1202 }}</ref> || 20142021-03-0531 || [[Windows]] || {{Nonfree|[[Proprietary software|Proprietary]] [[Commercial software|commercial]]}} || {{No}} || ''Requires Excel for showing graphs and result of [[Benford law]] analysis.''

|-

| [[InfoZoom]] || humanIT || 9.0.5 || 2016-11-07 || [[Windows]] || {{Nonfree|[[Proprietary software|Proprietary]] [[Commercial software|commercial]]}} || {{No}} ||

|-

| [[Interactive Data Extraction and Analysis]] (IDEA) || [[CaseWare International| CaseWare International Inc.]]|| 1011.21<ref name="idea9.1">{{cite web|url=https://casewareanalytics.com/blog/product-close-whats-new-idea-102|title=IDEA Version 10.2|last=|first=|date=|website=|accessdate=9 May 2013}}</ref> || 2016-10-26 || [[Windows]] || {{Nonfree|[[Proprietary software|Proprietary]] [[Commercial software|commercial]]}} || {{No}} ||

|-

| TeamMate Analytics (formerly TopCAATs) || Wolters Kluwer || 5.1 || 2017-09-18 || [[Windows]] || {{Nonfree|[[Proprietary software|Proprietary]] [[Commercial software|commercial]]}} || {{No}} || ''Requires [[Microsoft Excel]] (TeamMate Analytics runs within Excel)''

|-

| SoftCAAT/ eCAAT<ref>{{Cite web|url=http://wincaat.com/Products/SoftCAAT.aspx|title = WINCER: Products}}</ref><ref name="wincaat.com">{{cite web |url=http://wincaat.com/Products/eCAAT.aspx |url-status=dead |archive-url=https://web.archive.org/web/20160408200442/http://wincaat.com/Products/eCAAT.aspx |archive-date=2016-04-08 |title=WINCER: Products}}</ref> || Wincer Infotech Limited || 9.0/ 9.0 || 2016-04-04 || [[Windows]] || {{Nonfree|[[Proprietary software|Proprietary]] [[Commercial software|commercial]]}} || {{No}} || ''SoftCAAT is an independent application. eCAAT requires [[Microsoft Excel]] (eCAAT is an Excel add-in)<ref name="wincaat.com"/>''

|}

Line 150 ⟶ 154:

#'''Sort field''': Specifies whether the product supports sorting (indexing) by a specific field (column). Sorting helps identifying blank/empty values or excessive (out-of-band) values.

#'''Sort multiple fields''': Specifies whether the product supports sorting by multiple fields (columns).

#'''Statistics''': Specifies whether the product supports calculation and presentation of various statistics on a specific field (e.g., for the values of a numeric fields valuesfield such as a total number of positive numbers, total number negative numbers, average value (balance), etc.)

#'''Stratification''': Specifies whether the product supports [[Data stratification|stratification]] on number (amount) values in specified intervals. Splits the population into strata (intervals) and aggregates (summarizes) values. Can be used to find largest, smallest and average amount transactions (rows).

#'''Total row''': Specifies whether the products supports displaying a total row for the table/file, e.g. accumulated numerical value.

Line 179 ⟶ 183:

| style="text-align: left" | [[Easy2Analyse]] (QDAC.net) || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}}

|-

| style="text-align: left" | ESKORTIntrasoft Audit Support Computer Audit (SESAM) || {{NoYes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{NoYes}} || {{Yes}} || {{NoYes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}}

|-

| style="text-align: left" | [[InfoZoom]] || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}}

Line 212 ⟶ 216:

| style="text-align: left" | [[Easy2Analyse]] (QDAC.net) || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}}

|-

| style="text-align: left" | ESKORTIntasoft Audit Support Computer Audit (SESAM) || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}}

|-

| style="text-align: left" | [[InfoZoom]] || {{Yes}} || {{Yes}} || {{Yes}} || {{No}} || {{Yes}}

Line 251 ⟶ 255:

| style="text-align: left" | [[Easy2Analyse]] (QDAC.net)|| {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}}

|-

| style="text-align: left" | ESKORTIntrasoft Audit Support Computer Audit (SESAM) || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{NoYes}} || {{Yes}} || {{NoYes}}

|-

| style="text-align: left" | [[InfoZoom]] || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{Yes}} || {{dunno}} || {{dunno}} || {{dunno}}

Line 269 ⟶ 273:

==External links==

* [https://web.archive.org/web/20150516002553/http://www.arbutussoftware.com/performance-results.html Performance Comparison]

* [https://auditorsdesk.in/our-solutions/by-tools/ Audit Automation Tools]

* [http://forum.it-tech.com.br Fórum]

Line 278 ⟶ 284:

{{reflist}}

[[Category:Computer-aided audit tools| ]]

[[Category:Information technology audit]]

[[Category:Computer-aided audit tools]]

[[Category:Data analysis software]]