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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 provides 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, respectively:
*'''Analytical Tests'''
Evaluations of financial information made by studying plausible relationships among both financial and non-financial data to assess whether account balances appear reasonable (AU 329). Examples include ratio, trend, and [http://www.nist.gov/dads/HTML/benfordslaw.html Benford's Law] tests.
*'''Data Analysis Reports'''
Reports produced using specific audit commands such as filtering records and joining data files.
*'''Continuous Monitoring'''
[http://www.theiia.org/itaudit/index.cfm?fuseaction=print&fid=5404 Continuous Monitoring] is an ongoing process for acquiring, analyzing, and reporting on business data to identify and respond to operational business risks. For auditors to ensure a comprehensive approach to acquire, analyze, and report on business data, they must make certain the organization continuously monitors user activity on all computer systems, business transactions and processes, and application controls. The Institute of Internal Auditors recently published a GTAG on Continuous Monitoring.
== Note on the Acronyms CAATTS vs CAATS==
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