ACCTG 027 – Auditing in CIS Environment

Assignment 4: CAATs

Questions:

1. The field calls for an “M” for married or an “S” for single. The entry is a “2.” What
control will detect this error?
2. The firm allows no more than 10 hours of overtime a week. An employee entered “15”
in the field. Which control will detect this error?
3. The password was “CANARY”; the employee entered “CAANARY.” Which control will
detect this error?
4. The inventory item number was omitted on the purchase order. Which control will
detect this error?

Answers:

1. A numeric/alphabetic data check.

2. A limit check tests a numerical amount to ensure that it does not exceed a
predetermined value.

3. A validity check compares the ID code or account number in transaction data

with similar data in the master file to verify that the account exists. A
reasonableness test determines the correctness of the logical relationship
between two data items.

4. A minimal completeness check compares the sample count to the questionnaire

count to insure that all samples are accounted for, even if no data were collected.