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Computer-Assisted Audit Techniques (CAATs) are used to assist an auditor in the collection of audit evidence from computerized systems.

      

Computer-Assisted Audit Techniques (CAATs) are used to assist an auditor in the collection
of audit evidence from computerized systems.

Required:
List and briefly explain four advantages of CAATs.

  

Answers


Wilfred
The advantages of Computer-Assisted Audit Techniques (CAATs) are that they:
•• Enable the auditor to test program controls – if CAATs were not used then those controls
would not be testable.
•• Enable the auditor to test a greater number of items quickly and accurately. This will
also increase the overall confidence for the audit opinion.
•• Allow the auditor to test the actual accounting system and records rather than printouts
which are only a copy of those records and could be incorrect.
•• Are cost effective after they have been setup as long as the company does not change
its systems.
•• Allow the results from using CAATs to be compared with ‘traditional’ testing – if the two
sources of evidence agree then this will increase overall audit confidence.
Wilfykil answered the question on April 13, 2019 at 06:44


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