In auditing the financial statements of companies which use computerized accounting systems, the auditors may find that this traditional (audit) trail is often obscured. Various techniques can be used in order to give the auditors greater assurance when the audit trail is lost. Required Outline how audit software can be used by the auditors in order to assist them in carrying out their analytical procedures

The auditors can use audit software for analytical procedures in the following ways:-

i) It can read computer files and extract data, such account balances, agreeing analysis for stock and debtors etc.

ii) If the relevant information is on the computer, the audit software can compare current results to prior year or to budget.

iii) Other computational aspects would be the calculation of days sales in debtors or days purchases in stock and creditors.

iv) The audit software can calculate any amount of variance, trends and ratios. The auditor must still analyse what the software produces which will involve them using professional judgment in analyzing the figures.

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