Internal Audit Efficiency Through Automation [Hardcover]

Internal Audit: Efficiency Through Automation teaches state-of-the-art computer-aided audit techniques, with practical guidelines on how to get much needed data, overcome organizational roadblocks, build data analysis skills, as well as address Continuous Auditing issues. Chapter 1 CAATTs History, Chapter 2 Audit Technology, Chapter 3 Continuous Auditing, Chapter 4 CAATTs Benefits and Opportunities, Chapter 5 CAATTs for Broader Scoped Audits, Chapter 6 Data Access and Testing, Chapter 7 Developing CAATT Capabilities, Chapter 8 Challenges for Audit,

Case Studies xv

Preface xvii

Acknowledgments xxi

CHAPTER 1 CAATTs History 1

The New Audit Environment 2

The Age of Information Technology 3

Decentralization of Technology 3

Absence of the Paper Trail 4

Do More with Less 4

Definition of CAATTs 5

Evolution of CAATTs 6

Audit Software Developments 7

Historical CAATTs 8

Test Decks 8

Integrated Test Facility (ITF) 9

System Control Audit Review File (SCARF) 9

Sample Audit Review File (SARF) 9

Sampling 10

Parallel Simulation 10

Reasonableness Tests and Exception Reporting 11

Traditional Approaches to Computer-Based Auditing 12

Systems-Based Approach 12

Data-Based Approach 15

Audit Management and Administrative Support 19

Roadblocks to CAATT Implementation 20

Summary and Conclusions 24

CHAPTER 2 Audit Technology 27

Audit Technology Continuum 27

Introductory Use of Technology 27

Moderate Use of Tlœ