Computer Assisted Audit Technique (CAAT) is a method in which auditing procedures are automated and are performed using computers, helping in speeding up the auditing process. More and greater reliances are placed within the conclusion. This paper discusses the procedures that…
The aim of this project is to give a better understanding of CAATs; this is further supported by practical illustrations and examples of CAATs. To start any audit, understanding and knowledge of the business should be gained during the planning stage. This knowledge of the business helps in analyzing the internal control systems, and then it is decided whether or not to rely on the internal control system. It is later decided upon the nature of the client and its system to use CAATs. The advantages of CAATs clearly outweigh its disadvantages and this technique clearly has an upper hand when it comes to processing large amounts of data. The other issue in this paper is the concern of using this technique after having proper analysis of the business being audited. Finally, the paper is concluded by pointing out that its benefits clearly outweigh its risk, how to plan for using the CAATs and recommended training of an IT audit specialist.
Auditing is the process by which something is examined with a view to form an opinion. This allows users of that opinion to gain assurance that the opinion, process, or the information gathered can be trusted. The purpose of assurance services is to increase the confidence and reduce the risk of the user of those services. The main objective of auditing is to ensure that financial statements are free from material misstatement and are presented fairly by the management. An auditor carries out two types of assurance engagements, with one being the reasonable assurance engagement and the other being the limited assurance engagement. When giving out a reasonable assurance engagement, the auditor gathers sufficient and appropriate evidence to support the conclusion, as well as making it stronger. On the other hand, a limited assurance engagement gives out a negative assurance report and the evidence gathered in an assurance engagement is only related to the specific subject matter that is being audited ...
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Various driving factors and inherent benefits for different companies are proving to be incentives for the organisations towards enhanced financial globalisation. The growing interdependence of developed economies on developing and emerging economies is contributing towards increased globalisation (Hamilton & Quinlan, 2008, p.iv).
While undertaking the duties, it is necessary that the auditor should disclose all material matters in order to provide a better and clear idea. Another fact is that while conducting audit, “users derive value from the knowledge that a member of the profession has no interest in the information other than for its usefulness” (Christopher, 2012, slide.
As this quote suggests, Internet has been very popular within businesses. Increasing use of the Internet, as well as rapid development of associated technologies is leading to the growth of e-commerce as well. With the popularity of Internet the concept of e-commerce is used by more and more companies today.
It also includes profitability and protection of the company's assets. This exhibits that the internal control system should first of all meet the objective of accomplishing the company's operational goals and objectives. The second objective of an internal control system is to prepare a reliable and trustworthy financial reporting system.
al public and the accounting profession have had their differences over time on how the auditor should handle the process and what type of information should be reported by auditors to the users of the financial information. The difference between what the public and other
This report further discusses the advantages and the disadvantages of this technique along with its implications. Further on, CAAT is compared with other traditional auditing techniques to give a better understanding of the
The aim of this project is to give a better understanding of Computer Assisted Audit Techniques; this is further supported by practical illustrations and examples of CAATs. To start any audit, an understanding and knowledge of the business should be gained during the planning stage.
In other words, the procedures may be applied to compare financial information recorded and secured in past, to compare the actual results with initially developed forecasts and targets etc (Internet: allbusiness.com). Indeed, these
ppointment on the decision to dismiss the current audit firm and believes that since the audit firm was rendering its service for more than 15 years, everyone in the charity was very comfortable with the firm’s auditor. Besides, board members also revealed their concern about
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