1. S. Y. BAF
(IV SEMESTER)
Information Technology

2. Presented By……………
Rikesh Chaurasia – 807
Ekta Chheda – 808

3. COMPUTERISED ACCOUNTING AUDITING
TECHNOLOGY
 CAATTs is a growing field within the accounting audit
profession.
 CAATs is the practice of using computers to automate the
accounting and audit processes.
 CAATs normally includes using basic office productivity
software such as spreadsheet, word processors and text
editing programs and more advanced software packages
involves use statistical analysis and business intelligence
tools.

4. Traditional Accounting and Auditing example
 The traditional method of accounting and auditing, allows
auditors to build conclusions based upon a limited sample
of a population, rather than an examination of all available
or a large sample of data.
 The use of small samples may diminish the validity of
accounting and audit conclusions.
 Management realizes that they conduct thousands or
perhaps millions of transactions a year and the auditor only
sampled a handful.

5. CAAT’s Alternative
 CAATs, as it is commonly used, is the practice of analyzing
large volumes of data .
 Using CAATs the auditor will extract every transaction the
business unit performed during the period reviewed.
 The auditor will then test that data, to determine if there are
any problems in the data.
 For example, using CAATs the auditor can find invalid Social
Security Numbers (SSN) by comparing the SSN to the issuing
criteria of the social security administration.

6. Specialized Software
 In the most general terms, CAATTs can refer to any computer
program utilized to improve the audit process.
 Generally, however, it is used to refer to any data extraction
and analysis software.
 This would include programs such as spreadsheets
(e.g. Excel), databases (e.g. Access), statistical
analysis (e.g. SAS), business intelligence (e.g. Crystal
Reports and Business Objects), etc.

7. Other uses of CAATs
Creation of electronic work papers
Fraud detection
Analytical tests
Data analysis reports

8. Computerized Accounting
 Financial reports are automatically generated at the end of
accounting year.
 The computerized accounting eliminates paper work making
it easier and faster to collect.
 A Computerized Accounting System is now a basic
necessity and no longer a luxury among businesses of
whatever orientation and size.
 In the past, accounting was done manually by business
owners and that process was time consuming.

9. Why Do You Need To Computerize Accounting
Process?
 Over the centuries, traditional way to keep accounts was to use
calculators, pen and set of paper books which was time
consuming.
 But with today's changing world and computerization are widely
used, there seems no need to have to take the manual way.
 The computer system should be able to perform these basic
tasks in a flash and keep you up to date.
 By this, you will increase efficiency and accuracy that eventually
lead to saving time and money.

10. Advantages of Computerized Accounting
 Automatic document production
 Accuracy
 Up-to-date information
 Staff motivation
 Speed

11. Disadvantages of Computerised Accounting
Cost
Difficulty
Fraud
Additional software
Training

12. Computerized Auditing
Internal Auditors are advising organizations on internal
control attributes and ways to gain assurance from
information.
Internal Audit groups faced with growing workloads
Audit technology tools facilitate more granular analysis of
data and help to determine the accuracy of the
information.

13. Scope Of Computerized Auditing
An IT audit should not be confused with a financial
statement audit.
A financial audit's primary purpose is to evaluate
whether an organization is adhering to standard
accounting practices.
The primary functions of an IT audit are to evaluate the
system's efficiency and security protocols.

14. Procedures For Computerized
Auditing
Preparation for computer processing
Preparation of a check list
Data processing

15. Audit Methods
Test-data method
Detailed examination of selected programs and
reprocessing of selected data with these programs
Use of general-purpose programs

16. Advantages of Auditing Techniques
Examination of data is more rapid
Examination of data is more accurate
The only practical method of examining large amounts
of data
Provides new opportunities to the auditor

17. Disadvantages of Auditing Techniques
Can be expensive to set up or acquire.
Some technical knowledge is required.
A variety of programming languages is used in business.
 Standard computer audit programs may not be
compatible.

18. Audit Through Computers
Auditing around the computer is one of the methods
used to test or evaluate a PC or Mac.
It involves grabbing random chunks of data, and then
executing or testing them to see what output is given.
Auditing around the computer is an excellent way to tell
if there is an overall PC problem.

19. Conclusion
Internal Auditors can take advantage of CAATs to
improve efficiency and effectiveness of the audit. With the
right tools, training and methodology, CAAT-Enabled
Auditing can help speed up the audit process, and provide
access to data that would otherwise remain untapped.

20. Thank You…..