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CAAT
Presentation By: Vaibhav Bajpai
TOOLS
Example of a Payroll Auditor
An IS AUDITOR performing a payroll review, observed that many of the required validations relating to the salary ranges and admissible allowances and perks were not built-in within the application software.
Management's concerns were • Have any errors or fraud really taken place? • Have we lost any money? • Have we erred in any payroll-related tax compliances?
Presentation By: Vaibhav Bajpai
What is CAAT?
CAAT refers to:
Computer Assisted Audit Technique
Techniques are available in form of various tools: • GAP’s (Generalized Audit Package)• Test Data• Application Software Tracing• Mapping • Digital Analysis
Presentation By: Vaibhav Bajpai
Why to use CAAT?
Presentation By: Vaibhav Bajpai
Due to Increased
Audit universe
Why use CAATS?
Dependence on
IS functions
Availability ofrecords in electronicformats
It increasesefficiency andaccuracy ofIS auditors
Manual testare subjectto various
risks
High volumesof data
get examined For 100%sampling
Ability toProvide
details forAudit
Evidence
It supportsaudit findingsin digital form
CASE STUDY
CAAT Tool: Digital Analysis
CAAT Tool: Digital Analysis
FACTS
• Client is a restaurant,
operating a bar.
• Bar is opened from 8:00 PM to 11:00 PM
• No orders are booked without clearing of Kitchen order ticket.
Presentation By: Vaibhav Bajpai
USE OF CAATS
• IS auditors extracted data from KOT database of client.
• Scrutiny revealed 50% KOT’s of sale were made after 11:00 PM
• Live shop audit revealed that KOT’s were not prepared at the time of order.
Obstacles in Using CAAT?
Presentation By: Vaibhav Bajpai
Setup Cost
Obstacles in
CAATS?
TrainingCost
Access to Clients
Database
UnderstandingDifferent
Data Structure
Initial Development
Of analysisApproach
Data Storage
Restrictions
Ability todownloadData from
AuditEvidence
It supportsaudit findingsin digital form
CAAT Tool: Network Security
CASE STUDY
CAAT Tool: Network Security
FACTS
• Client is a manufacturer
• Purchase orders were
raised by the purchase officers and approved online by purchase manager
• Concern is purchase rate being higher than that mentioned in rate master.
Presentation By: Vaibhav Bajpai
USE OF CAATS
• Logs of amendment module were scrutinized.
• It was observed that the PO’s were amended after being approved by purchase managers.
• Further scrutiny network logs revealed that amendment to PO’s was possible through login of purchase officers.
Few Words of Caution
Presentation By: Vaibhav Bajpai
• First-time deployment of audit software needs to be done with all cautions in place.
• Attend immediately to the reluctance of the IS staff.
• Solve your differences with management of Auditee regarding access to the production data.
Contd…
Few Words of Caution
Presentation By: Vaibhav Bajpai
• Invest in training on the audit software.
• Training should not be confined to the commands and menus in the software but must include real-life exercises using one of the applications running in the auditee organization.
Presentation By: Vaibhav [email protected]
R.C. Bajpai & Co.
www.rcbajpai.com
Thank Youfor
Your Attention
