Transcript Chalkboard Template - R C Bajpai & Company

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 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?
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
[email protected]
R.C. Bajpai & Co.
www.rcbajpai.com
Bajpai