Issued: 2014/02; Revised: 2019/06/15 Show
Computer assisted audit techniques (CAAT) is a method of gathering and reviewing electronic records. CAAT is used to simplify or automate the data analysis and audit process, and it involves using computer software to analyze large volumes of electronic data for anomalies. The branch has a dedicated team of Computer audit specialists (CAS) who develop and maintain CAAT, and respond to auditors’ requests for assistance. Benefits of a CAAT audit are:
The adoption of CAAT to an audit does not change the normal process. The assigned auditor is responsible for every aspect of planning, scheduling, directing, and completing the audit process. The assigned auditor's responsibilities include the following: Planning the audit
Opening Conference
Directing workflow
Closing conference and completing the audit
When the audit is finished, the following is how DVDs and CDs are destroyed and there is no additional form necessary to document the taxpayer’s name(s) and information:
The following are a few examples of where CAAT can be used: Sales
Tax Account
Purchases of operating supplies (for accounts at risk of tax liability) or capital assets
RefundsFor refunds containing more than 500 lines items to review and for which all the supporting documents are available, statistical sampling may be used to draw random test samples. The CAS auditor will select the representative sample based on branch statistical sampling policy, and then extrapolate the results back to the refund. Refer to Bulletin CTB 004, Statistical Sampling (PDF, 399KB), for more details. Scan a List of Paper Records or Imaged DocumentsAuditors should use optical character recognition software to convert paper copies and image files (such as Adobe Reader image files) into files whose information can be searched or (if applicable) arranged in spreadsheets. For example:
What is the importance of CAATs in audit work?CAATs may improve the effectiveness and efficiency of auditing procedures. They may also provide effective tests of control and substantive procedures where there are no input documents or a visible audit trail, or where population and sample sizes are very large.
What are CAATs and what benefits do they provide to IT auditors?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.
What are the uses of computer assisted auditing techniques CAATs or programs?The use of computer-assisted audit techniques (CAATs) serves as an important tool for the auditor to evaluate the control environment in an efficient and effective manner. The use of CAATs can lead to increased audit coverage, more thorough and consistent analysis of data, and reduction in risk.
What are the main objectives of CAATs?CAATs allow the auditor to: Independently access the data stored on a computer system without dependence on the client; Test the reliability of client software, i.e. the IT application controls (the results of which can then be used to assess control risk and design further audit procedures);
|