Computer assisted audit techniques can be defined as any technique that enables the auditor to use Information technology systems as the source of gathering audit
the following are advantages of CAATs :
- CAATs allow the audit team to test a large volume of data more accurately and quickly than if tested manually.
- CAATs decrease the scope for human error during testing and can provide evidence of higher quality.
- By using CAATs, auditors can test actual transactions within the system rather than working on printouts from spool or previewed files which are dependent on other software (and therefore could contain errors or could have been tampered with following export).
- Assuming the system remains unchanged, CAATs used in the audit of current year should bring time (and therefore cost) savings in the long term, which should be more to compensate for any set up costs.
- Auditors can utilize CAATs to test programs controls as well as general internal controls associated with computers.
- Results from CAATs can be compared with results from traditional testing. If the results correlate, overall confidence is increased.
- The use of CAATs allows audit team members more time to focus on risk areas and issues requiring judgment, rather than performing routine calculations that can be carried out by audit software.