CAATs are procedures which are performed through a computer. The audit approach thus shifts from conventional to the use of computer system. Use of CAATs is governed by ISA 1009 and describes two of the main types of CAATs as:
1) Audit Software
2) Test Data
- Printa Limited is a large printing company, which has an on-line computer accounting system. The system is based around a central main frame computer, with terminals serving individual departments. As part of the interim audit work, you have been asked to carry out a preliminary evaluation of ;•The integrity of the data base as far as it is relevant to your audit and, •The effectiveness of the computer controls over sales and debtors.Required: Describe the controls, which you would expect to be in operation in order to maintain integrity of the database
- Many auditors now use laptops computers to perform various audit tasks. However, if audit firms use laptop computers they risk data being corrupted and appropriate controls must therefore be put in place to prevent the corruption of data;Explain six ways which auditors can use laptop computers in their audit work (other than computer-assisted audit techniques)
- Working papers provide the audit evidence. They can be categorized into: Auditors‘ prepared working papers, Client‘s schedules used as working papers , Audit programmes.Working papers are then organized into files usually referred to as either current files of permanent files.Required:c) What details should an audit programme indicate?