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IMPACT OF IT ON AUDIT PROCESS - Coggle Diagram
IMPACT OF IT ON AUDIT PROCESS
Audit software
Written program or Custom audit software
written by auditor for specific audit tasks
necessary when entity's CIS not compatible with generalised audit software
expensive and take longer time to develop and need modification every time entity change their system
Test data
use for testing application controls in entity computer program
function of test data
check data validation control and error detection
check processing logic controls
check arithmetic calculations
check infusion of transactions in records
Disadvantage
time consuming
auditor not certain that all relevant controls are tested
Advantage
provide direct evidence of effectiveness of controls
useful for determine whether control relate to accuracy and completeness of processing is effective
Package programs or generalised audit software
perform calculation
perform data processing functions
select sample and provide report
Types of CAATs
Integrated test facility
enter test data with actual data in normal application run
Concurrent auditing technique
Parallel Simulation
auditor need to construct simulation program that mimics entity application program
Advantage of using CAAT
ability to scrutinize large volume
eliminate manual casting, cross casting
lesser manual procedures
time may be save
auditor does not necessary have to be present at client office
review and finalising time may be reduced