Other uses of CAATTS

In addition to using data analysis software, the auditor utilizes CAATS throughout the audit for the following activities while performing data analysis: [edit] Creation of Electronic Work Papers

Keeping electronic work papers on a centralized audit file or database will allow the auditor to navigate through current and archived working papers with ease. The database will make it easier for auditors to coordinate current audits and ensure they consider findings from prior or related projects. Additionally, the auditor will be able to electronically standardize audit forms and formats, which can improve both the quality and consistency of the audit working papers. [edit] Fraud Detection

CAATTs provides 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.

CAATTs can assist the auditor in detecting fraud by performing and creating the following, [edit] Analytical Tests

Evaluations of financial information made by studying plausible relationships among both financial and nonfinancial data to assess whether account balances appear reasonable (AU 329). Examples include ratio, trend, and Benford's Law tests. [edit] Data Analysis Reports

Reports produced using specific audit commands such as filtering records and joining data files. [edit] Continuous Monitoring

Continuous Monitoring is an ongoing process for acquiring, analyzing, and reporting on business data to identify and respond to operational business risks. For auditors to ensure a comprehensive approach to acquire, analyze, and report on business data, they must make certain the organization continuously monitors user activity on all computer systems, business transactions and processes, and application controls. The Institute of Internal Auditors recently published a GTAG on Continuous Monitoring. See also Continuous Auditing. [edit] Curb stoning in surveys

Curb stoning is the term for instances where a surveyor completes a survey form by making up data. Because some of the data should conform with Benford's law, this practice can be detected using CAATTs which provide the capability of performing such tests. An example case study is provided at [16] to illustrate. [edit] Note on the Acronyms CAATTs vs CAATs

CAATTs and CAATs are used interchangeably. While CAATs has emerged as the more common spelling, CAATTs is the more precise acronym. The acronym CAATTs solves one of the two problems with defining the acronym. CAATs means:

Computer Aided (or Assisted) Audit Tools (or Techniques)

The first "A" and the "T" can have two different meanings depending on who uses the term. By using the term CAATTs, one is clearly incorporating both "Tools" AND "Techniques." [edit] CAATTs and Other BEASTs for Auditors by David Coderre

CAATTs and Other BEASTs for Auditors by David Coderre is the seminal work on CAATTs. David Coderre argues that the term CAATTs is much more appropriate because there is no purpose in having techniques if you don't have the tools, or the tools without the techniques. Coderre attempts to differentiate the use of CAATTs for any computer program used to improve the audit with the acronym "BEASTs." BEASTs stands for, "Beneficial Electronic Audit Support Tools." While CAATTs has become a household term in audit units, BEASTs remains relatively unused. BEASTs includes electronic work papers, Microsoft suite of products, and non-analytical programs/applications.