System Integrity and Validation
October 15, 2012
In the previous brief we discussed two different types of audit plans that analyzed the payroll system, accounts payable systems, accounts receivable, and the inventory system. This brief will recommend and explain how computer- assisted auditing techniques (CAATs) software is used to validate data and system; explain the functions of audit productivity software; and also explain how audit productivity software can be used in the system design. How CAATs is used to validate data and system integrity:
Computer- assisted auditing techniques are used to increase the effectiveness and efficiency of audit functions. There are many reasons CAATs are preferred such as auditors may use the software to extract data which is used to analyze potential fraud data. CAATs may also be used to test and validate computer programs to determine if the organization’s source codes are at risk. The techniques may also be used to analyze samples of data or all of the data. CAATs can be used to increase the effectiveness of internal and external audits while allowing the auditors to analyze the financial data which provides a feature that would not be possible if the audits had been done manually. Computer- assisted auditing techniques are used to enhance the audit process and give the internal auditor independence; however, the procedures may be time consuming and may not be as cost effective. Auditors are able to validate applications through test data, integrated test facility, or parallel simulations. Test data is data that is used in the system as a means to determine the expectancy of the intended outcome and the expectations that have been tested. Integrated test facility tests applications and financial data through fabricated data that is sued in the client’s system. While parallel simulation involves software that replicates a module of the application. Audit...
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