CAAT TOOLS Presentation By Vaibhav Bajpai Example of

CAAT TOOLS Presentation By: Vaibhav Bajpai

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 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? Due to Increased Audit universe Dependence on IS functions Availability of records in electronic formats It supports audit findings in digital form Why use CAATS? It increases efficiency and accuracy of IS auditors Ability to Provide details for Audit Evidence High volumes of data get examined For 100% sampling Manual test are subject to various risks Presentation By: Vaibhav Bajpai

CASE STUDY CAAT Tool: Digital Analysis

CAAT Tool: Digital Analysis FACTS USE OF CAATS • Client is a restaurant, operating a bar. • IS auditors extracted data from KOT database of client. • Bar is opened from 8: 00 PM to 11: 00 PM • Scrutiny revealed 50% KOT’s of sale were made after 11: 00 PM • No orders are booked without clearing of Kitchen order ticket. • Live shop audit revealed that KOT’s were not prepared at the time of order. Presentation By: Vaibhav Bajpai

Obstacles in Using CAAT? Setup Cost Training Cost Access to Clients Database It supports audit findings in digital form Obstacles in CAATS? Understanding Different Data Structure Data Storage Restrictions Initial Development Of analysis Approach Ability to download Data from Audit Evidence Presentation By: Vaibhav Bajpai

CASE STUDY CAAT Tool: Network Security

CAAT Tool: Network Security FACTS USE OF CAATS • Client is a manufacturer • Logs of amendment module were scrutinized. • It was observed that the • Purchase orders were PO’s were amended after raised by the purchase being approved by purchase officers and approved managers. online by purchase manager • Further scrutiny network logs revealed that amendment to PO’s was • Concern is purchase rate possible through login of being higher than that purchase officers. mentioned in rate master. Presentation By: Vaibhav Bajpai

Few Words of Caution • 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… Presentation By: Vaibhav Bajpai

Few Words of Caution • 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 Bajpai

Thank You for Your Attention Presentation By: Vaibhav vaibhav@rcbajpai. com R. C. Bajpai & Co. www. rcbajpai. com Bajpai