COMPUTER ASSISTED AUDITING TOOLS (CAATs)

CAATs are computer programs that the auditor use as part of the audit procedures to process data of audit significance contained in a client’s information systems, without depending on him. CAAT helps auditors to perform various auditing procedures such as (a) Testing details of transactions and balances, (b) identifying inconsistencies or significant fluctuations, (c) Testing general as well as application control of computer systems. (d) Sampling programs to extract data for audit testing and (e) redoing calculations performed by accounting systems. Forensic accounting software (for accounting purposes) comes in two different varieties: data extraction software and financial analysis software. Data extraction software is designed to conduct spreadsheet analyses on all the company’s computer database records, such as billings, accounts receivables, accruals and account payables, payments to vendors, payroll and purchasing. Unusual inconsistent fluctuations of anomalies are then detected and investigated. In general financial analysis software uses monthly, quarterly or annual financial statements or it can be used at any time as per our requirement basis.