Computer Assisted Audit

Techniques
(CAATs)
Are computer programs and data
which the auditor, as part of the audit
procedures to process data of audit
significance contained in an entity's
information systems
 Test Data
A technique designed to test the
effectiveness of internal control
procedures which are incorporated
in the client's computer program
Establish the application processing integrity
• Uses "test deck"
-Valid data
-Purposefully selected invalid data
-Possible
*input error
*logical processes
*irregularity
Diri tong first flow chart
sa test data
PROCEDURES:
1. Predetermined results and expectations
2. Run test deck
3. Compare results
Integrated Test Facility
The technique of using an appropriate unit
in testing the computer system without
depending on the test data made alone by
the auditor
- It integrates the processing of test data
with the actual processing of ordinary
transactions without management being
aware of tge testing process
 Flow chart sa ITF
PROCEDURES
1. Set up a dummy entity within the application system
2. System able to discriminate between ITF audit module
transactions and routine transactions
3. Auditor analyzes ITF results against expected results
Parallel Stimulation
A technique where an auditor write a
program that stimulates key features
of the program under review
 Flow chart sa
stimulation
Procedures
1. Auditor gains thorough understanding of the application under
review
2. Auditor identifies those processes and controls cretical to the
application
3. Auditor creates the stimulation using the software or program
4. Auditor runs the selected program using selected data and files
Generalized audit Purpose written
software programs
- designed to perform
common audit task - designed to perform
audit task in specific
Ex. Verifying circumstances. This is
calculations, done by hiring an
summarizing and
totaling files, reporting outside programmer
and customize formats
Other CAATs
• Snapshots - involves taking pictures of the
various stages of processing

• System control audit review files (SCARF) -

involves embedding audit software
modules to monitor the system
transactions