Using CAATTs the auditor will extract every transaction the business unit performed during the period reviewed.
When the check bounced, the participant's policy was retrospectively terminated, but the claim was still paid costing the company hundreds of thousands of dollars per year.
However, the CAATTs driven review is limited only to the data saved on files in accordance with a systematic pattern.
In addition saved data often contains deficiencies, is poorly classified, is not easy to get, and it might be hard to become convinced about its integrity.
But there are also audits that simply can't be made with due care and efficiently without CAATTs.
In the most general terms, CAATTs can refer to any computer program utilized to improve the audit process.
The fundamental course outline [1] include: There are several certification programs from various CAATs vendors and professional associations as the following: In addition to using data analysis software, the auditor uses CAATs throughout the audit for the following activities while performing data analysis: Keeping electronic work papers on a centralized audit file or database will allow the auditor to navigate through current and archived working papers with ease.
The database will make it easier for auditors to coordinate current audits and ensure they consider findings from prior or related projects.
CAATs provide auditors with tools that can identify unexpected or unexplained patterns in data that may indicate fraud.
Whether the CAATs is simple or complex, data analysis provides many benefits in the prevention and detection of fraud.
Reports produced using specific audit commands such as filtering records and joining data files.
Curb stoning is the term for instances where a surveyor completes a survey form by making up data.
Because some of the data should conform with Benford's law, this practice can be detected using CAATTs which provide the capability of performing such tests.