For all purpose

COMPUTER-ASSISTED
AUDIT TOOLS AND
TECHNIQUES (CAATTS) ;
ELECTRONIC DATA
INTERCHANGE (EDI)

Alcoran, Bebe Jean

For Presenration
Jaque, Wilmer Jr.
WHAT IS CAATTS?
Computer Assisted Audit Tools and Techniques (CAATTs) is an
auditing method that uses computer software tools to query
business to pro;duce reports that will enhance audit.
It includes tools used by auditors during their work. These tools
allow auditors to receive data in any form and analyze it better.
CAATTs includes various methods that can help auditors in
many ways. For eaxample, auditors can use them to identify
trends or single out anomalies in the provided information.
These tools are available for both external and internal audit
uses. 2
HOW DO COMPUTER ASSISTED
AUDIT TECHNIQUES WORKS?

Computer Assisted Audit Techniques can work in various ways. For

example, auditors can introduce test data in the client's financial
systems. Using this, they can identify whether the system correctly
processes it and detects any issues. However, that requires auditors to
use the client's systems instead of their own. Despite that, it does not
imply that it is not effective to do so.

2
CAATTs for Testing Control
Test Data Method- It establishes application integrity by processing specially
prepared input data sets through production applications un
der review.

Based Case System Evaluation (BCSE)- The test is conducted with a set of test
transactions cointaning all possible transaction types. These are processed
through repeated iterations during system development testing until consistent
and valid results are obtained.

Iintegrated Test Facility- An automated techniques enables auditors to test an

application's logic and controls during normal operations. The ITF is one or more
audit modules designed into an application during the systems development
process. 2
Audit Command Language (ACL)
-Analytics is the leader in the industry. ACL was designed as a
meta-language for auditors to access data stored in various digital
formats and comprehensively test them. The following are standard
features of ACL;
Data Definition
Customizing view
Filtering Data
Stratisfying Data
Statistical Analysis

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ADVANTAGES OF COMPUTER
ASSISTED AUDIT TECHNIQUES

CAATs allow auditors to save time and test more items.

CAATs can help auditors conduct their audits in a more
cost-effective manner
CAATs enable auditors more freedom with their work and
focus on critical areas.
CAATs let auditors collectb more evidence and form better
opinions regarding their clients

2
DISADVANTAGES OF COMPUTER
ASSISTED AUDIT TECHNIQUES
Auditors may require the client's permission to use CAATs.
CAATs also need data in a specific format, which the client
may not be able to provide.
CAATs can be costly particularly when auditors use
bespoke tools.
Auditors need to have sufficient knowledge to operate
these tools
2
ELECTRONIC DATA INTERCHANGE
(EDI)
Is the computer-to-computer exchange of business
documents in a standard electronic format between business
partners.
By moving from a paper-based exchanged of business
document to one that is electronic, businesses enjoy major
benefits such as reduced cost, increased processing spreed,
reduced errors and impressed relationships with business
partners.
2
TWO APPROACHES RELATED TO ELECTRONIC
DATA INTERCHANGE
The Traditional Proprietary Version of Enterchange Data
Interchange- used by large companies and government
parties.
The Development of Electronic Data Interchange-
through the publicly available commercial infrastructure
offered through the internet.

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WHY EDI?
electronic Data Interchange allows a company to be
more competitive in today's business environment.
because EDI:

Saves Time
Improves Accuracy
Reduces COST
Strengthens Supplier Relationships
Can Increased Sales
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REFENCES
https://www.edibasics.com/what-is-edi/https://
www,accountinghub.online.com/computer-assisted-
audit-techniques/