1. Role of CAATs
Session 2

2. CAATs – A Definition
Computer based tools which can be used to improve the effectiveness and efficiency of the audit process
Techniques employed by auditors that use the computer as a tool for gathering and analysing audit data
Tools used only for administration of audit not covered in this training module
Use of CAATs results in
Changes in audit methodologies;
NOT in audit objectives

3. Trends in use of CAATs
Initial use of IT systems by auditees met by “audit around the computer”
Subsequently, “audit through the computer” using CAATs, with benefits in
Audit planning; and
Audit execution

4. Trends (Contd.)
Changing focus of CAATs use ( in line with changing nature/focus of SAI audit)
Not just financial and compliance audits;
Also performance and investigative audits

5. Audit Planning – Role of CAATs
Improvement of audit effectiveness
Trends and patterns more clearly visible
Better focus for manual/computerised audit
Ability to play around with data in “free form”, before commencing audit
Especially important for performance and forensic/investigative audits

6. Audit Execution – Role of CAATs
Improvement of audit efficiency
Better audit coverage
Savings in time and cost
More complex audit interrogations and better analytical capability
Greater opportunities to develop innovative audit approaches