SlideShare a Scribd company logo

Computer Assisted Audit Tools and Techniques - the Force multiplier in the battle against risk

•
•
Ee Chuan Yoong
Ee Chuan Yoong

Agenda Business case for Computer Assisted Tools/Techniques (CAATs) and data analytics Using CAATs to size up business processes quickly Simple CAATs techniques that yield quick return on investment Using CAATs for investigative work How CAATs was successfully integrated into a pre-CAATs audit team

BusinessTechnology
1 of 30
Download to read offline
COMPUTER ASSISTED AUDIT TECHNIQUES The force multiplier in the battle against risk ISACA Evening Talk (20 August 2013, Tuesday) @ NLB 20 Aug 2013ISACA Evening Talk - CAATs 1
AGENDA • Business case for CAATs and data analytics • Using CAATs to size up business processes quickly • Simple CAATs techniques that yield quick return on investment • Using CAATs for investigative work • How CAATs was successfully integrated into a Pre-CAATs audit team 20 Aug 2013ISACA Evening Talk - CAATs 2
BUSINESS CASE FOR CAATS & DATA ANALYTICS Informal Poll: How many in the audience are using Computer Assisted Audit Tools/Techniques (CAATS) or Data Analytics regularly? 20 Aug 2013ISACA Evening Talk - CAATs 3
BUSINESS CASE FOR CAATS & DATA ANALYTICS • Informal peer group of Heads of IA within institutions of a higher learning (IHL)s – unscientific straw poll: • 2012: 11% (1 out of 9 IHLs using CAATs) • 2013: 33% (3 out of 9 IHLs using CAATs) 20 Aug 2013ISACA Evening Talk - CAATs 4
BUSINESS CASE FOR CAATS & DATA ANALYTICS Source: PWC 2013 State of the Internal Audit Profession Study 20 Aug 2013ISACA Evening Talk - CAATs 5
20 Aug 2013ISACA Evening Talk - CAATs 6
BUSINESS CASE FOR CAATS & DATA ANALYTICS • Chief Audit Executives agree that CAATs is important • Adoption rates vary • Why are we not there yet in terms of CAATs use and implementation? 20 Aug 2013ISACA Evening Talk - CAATs 7
CAATS CHALLENGES & OPPORTUNITIES Opportunities Allows us to leverage on available technology (PCs, Excel, CAATs tools) Enhances team productivity 100% or more testing (include prior years) Strategic • “We are looking at big picture, trends then we drill down to examine details.” Challenges Requires a fundamental paradigm shift Old habits die hard Sampling mindset Fear of the unknown • “The data must be exact and correct before I can trust it to do testing!” 20 Aug 2013ISACA Evening Talk - CAATs 8
CAN’T SEE THE FOREST FOR THE TREES Perspective, Perspective and Perspective 20 Aug 2013ISACA Evening Talk - CAATs 9
USING CAATS TO UNDERSTAND BUSINESS PROCESSES Audit Objectives Scope & Coverage Walkthrough Understand business process Key controls • Preventive • Detective • Corrective Evaluation of Controls Controls testing Or substantive procedures 20 Aug 2013ISACA Evening Talk - CAATs 10
USING CAATS TO UNDERSTAND BUSINESS PROCESSES • Enterprises function in a data rich environment • Operational systems • Enterprise Resource Planning • Even stand-alone departmental applications also have own databases • And auditors have an eye for details which is useful for testing but… • Are we at risk of missing the forest for the trees? 20 Aug 2013ISACA Evening Talk - CAATs 11
USING CAATS TO UNDERSTAND BUSINESS PROCESSES Understand business process Random or judgmental sampling (“30!”) Test for errors (Y/N?) • Yes – extend sample • No – yay! Pre- CAATs 100% of transactions in system Understand data • E.g. Fieldstats • E.g. Summarise • E.g. Pivot Note initial insights Post- CAATs 20 Aug 2013ISACA Evening Talk - CAATs 12
USING CAATS TO UNDERSTAND BUSINESS PROCESSES ISACA IT Audit and Assurance Guideline G3 Use of Computer Assisted Audit Tools 1.4.3 CAATs can be used in performing various audit procedures including: • Tests of details of transactions and balances • Analytical review procedures • Compliance tests of Information Systems general controls • Compliance tests of IS application controls • Penetration testing 20 Aug 2013ISACA Evening Talk - CAATs 13
USING CAATS TO UNDERSTAND BUSINESS PROCESSES Types of CAATs (G3 Use of CAATS) Generalised audit software •E.g. Excel, ACL, Caseware IDEA Utility Software Application Software Tracing and Mapping Customised Queries and Scripts 20 Aug 2013ISACA Evening Talk - CAATs 14
SIMPLE CAATS THAT YIELD A QUICK RETURN ON INVESTMENT CAATS require investments in: Tools •Software licences •Hardware Techniques •Plan audits with CAATs in mind •Re-engineer audit procedures to use data and CAATs Time •Training of staff •Change management of mindsets and methods 20 Aug 2013ISACA Evening Talk - CAATs 15
USING CAATS TO UNDERSTAND BUSINESS PROCESSES • Contoso (fictitious company) • Analysis of international electronic sales • Size up data quickly • How many records? => addresses completeness issue • What are the fields? => suggests what can be tested • Examples using IDEA and Excel • Fieldstats • Summarisation • Excel Pivot 20 Aug 2013ISACA Evening Talk - CAATs 16
EXAMPLE 20 Aug 2013ISACA Evening Talk - CAATs 17 Disclaimer: • Not an “expert” in Excel or IDEA • There could be other better ways to do the analysis/tests shown • In fact, that is one of the challenges in CAATS – too many ways to perform the same function/test! • Paradox of choice – analysis paralysis
SIMPLE CAATS THAT YIELD A QUICK RETURN ON INVESTMENT Sorting / Filtering •Top 10/20 high/low •Filter or Criteria transactions that go against business rules/logic •Common sense testing Duplicates, Gaps Test •Duplicates – testing data accuracy and integrity, especially payments of claims, invoices and receipts •Gaps – missing sequences as a test of completeness 20 Aug 2013ISACA Evening Talk - CAATs 18
EXAMPLE 20 Aug 2013ISACA Evening Talk - CAATs 19
SIMPLE CAATS THAT YIELD A QUICK RETURN ON INVESTMENT Aging (for date and time related data) • Account balances • Payables/creditors • Receivables/debtors • Inventory • Fixed assets • Time-sheets 20 Aug 2013ISACA Evening Talk - CAATs 20
EXAMPLE 20 Aug 2013ISACA Evening Talk - CAATs 21
SIMPLE CAATS THAT YIELD A QUICK RETURN ON INVESTMENT Ratios •Big picture •Pareto analysis (80-20) •Relativity between departments, business units, business lines Trends (across space and time) •Time •stratification •Place •geographical •department •business units 20 Aug 2013ISACA Evening Talk - CAATs 22
EXAMPLE 20 Aug 2013ISACA Evening Talk - CAATs 23
USING CAATS FOR INVESTIGATIVE WORK Finding the proverbial needle in the haystack Not knowing what you don’t know Zooming in on very specific type of transactions •filtering / criteria •key word detection •joining data from separate databases CAATs 20 Aug 2013ISACA Evening Talk - CAATs 24
USING CAATS FOR INVESTIGATIVE WORK 20 Aug 2013ISACA Evening Talk - CAATs 25 Define the specific transactions or info needed Obtain data required --Typically requires multiple sources e.g. Finance, HR, Operational Depts Collate sufficient, appropriate evidence to substantiate wrong- doing
USING CAATS FOR INVESTIGATIVE WORK Search •Functions / Formulas •IDEA - @ISINI •Excel – <Ctrl>+F Join/Match •Putting together disparate but related pieces together •IDEA – FIND, JOIN, APPEND, @MATCH Patterns •Summarisation by staff/dept/type of transaction •Stratification by dates •Ratios 20 Aug 2013ISACA Evening Talk - CAATs 26
IMPLEMENTING CAATS: SOME THOUGHTS Pre-CAATs: education, sharing, change management CAATs implementation – Audit of Claims •Look for easy data-rich business processes CAATs training – in- house sharing and formal hands-on courses Audit Plan – consider CAATs, data available, useful analysis for raising observations 20 Aug 2013ISACA Evening Talk - CAATs 27
IMPLEMENTING CAATS: SOME THOUGHTS •It is okay to start small but one should start with what you already have or with a small pilot •Learning from doing (and making small mistakes) is part of the journey Start Now •It is about changing mindsets to be open to technology/new approaches that is key in success •Convincing people to adopt a data-driven vs. intuition approach is important Mindset vs. Technology/Skills •Helpful to walk the talk Lead by Example 20 Aug 2013ISACA Evening Talk - CAATs 28
IMPLEMENTING CAATS: SOME THOUGHTS 20 Aug 2013ISACA Evening Talk - CAATs 29 • Resources to get started – consider the following authors • ISACA IT Auditing Standards, Guidelines • David Coderre • Mark Nigrini
YOONG EE CHUAN Email: yekker@gmail.com Mobile: 96882300 (Whatsapp/LINE) 20 Aug 2013ISACA Evening Talk - CAATs 30

Recommended

Computer aided audit techniques (CAAT) sourav mathur
Computer aided audit techniques (CAAT) sourav mathurComputer aided audit techniques (CAAT) sourav mathur
Computer aided audit techniques (CAAT) sourav mathursourav mathur
 
Caat
CaatCaat
CaatDhruv Seth
 
Introduction to caat
Introduction to caatIntroduction to caat
Introduction to caatArti Parab Academics
 
Computer Assisted Audit Techniques (CAATS) - IS AUDIT
Computer Assisted Audit Techniques (CAATS) - IS AUDITComputer Assisted Audit Techniques (CAATS) - IS AUDIT
Computer Assisted Audit Techniques (CAATS) - IS AUDITShahzeb Pirzada
 
Chapter 11, Tests of Controls
Chapter 11, Tests of ControlsChapter 11, Tests of Controls
Chapter 11, Tests of ControlsSazzad Hossain, ITP, MBA, CSCA™
 
CAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesCAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesSaurabh Rai
 
Auditing In Computer Environment Presentation
Auditing In Computer Environment PresentationAuditing In Computer Environment Presentation
Auditing In Computer Environment PresentationEMAC Consulting Group
 
Integrating Data Analytics into a Risk-Based Audit Plan
Integrating Data Analytics into a Risk-Based Audit PlanIntegrating Data Analytics into a Risk-Based Audit Plan
Integrating Data Analytics into a Risk-Based Audit PlanCaseWare IDEA
 

Recommended

Computer aided audit techniques (CAAT) sourav mathur
Computer aided audit techniques (CAAT) sourav mathurComputer aided audit techniques (CAAT) sourav mathur
Computer aided audit techniques (CAAT) sourav mathursourav mathur
 
Caat
CaatCaat
CaatDhruv Seth
 
Introduction to caat
Introduction to caatIntroduction to caat
Introduction to caatArti Parab Academics
 
Computer Assisted Audit Techniques (CAATS) - IS AUDIT
Computer Assisted Audit Techniques (CAATS) - IS AUDITComputer Assisted Audit Techniques (CAATS) - IS AUDIT
Computer Assisted Audit Techniques (CAATS) - IS AUDITShahzeb Pirzada
 
Chapter 11, Tests of Controls
Chapter 11, Tests of ControlsChapter 11, Tests of Controls
Chapter 11, Tests of ControlsSazzad Hossain, ITP, MBA, CSCA™
 
CAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesCAAT - Data Analysis and Audit Techniques
CAAT - Data Analysis and Audit TechniquesSaurabh Rai
 
Auditing In Computer Environment Presentation
Auditing In Computer Environment PresentationAuditing In Computer Environment Presentation
Auditing In Computer Environment PresentationEMAC Consulting Group
 
Integrating Data Analytics into a Risk-Based Audit Plan
Integrating Data Analytics into a Risk-Based Audit PlanIntegrating Data Analytics into a Risk-Based Audit Plan
Integrating Data Analytics into a Risk-Based Audit PlanCaseWare IDEA
 
Auditing in Computerized Environment
Auditing in Computerized EnvironmentAuditing in Computerized Environment
Auditing in Computerized EnvironmentDr. Sushil Bansode
 
Basics in IT Audit and Application Control Testing
Basics in IT Audit and Application Control Testing Basics in IT Audit and Application Control Testing
Basics in IT Audit and Application Control Testing Dinesh O Bareja
 
Auditing in computerized environment.pptx
Auditing in computerized environment.pptxAuditing in computerized environment.pptx
Auditing in computerized environment.pptxinfantemiliya18
 
Computer-Assisted Audit Tools and Techniques
Computer-Assisted Audit Tools and TechniquesComputer-Assisted Audit Tools and Techniques
Computer-Assisted Audit Tools and Techniques_supriadi
 
Ch 9. Internal Audit
Ch 9. Internal AuditCh 9. Internal Audit
Ch 9. Internal AuditSazzad Hossain, ITP, MBA, CSCA™
 
Data analytics 2 analytics in the audit slides
Data analytics 2 analytics in the audit slides Data analytics 2 analytics in the audit slides
Data analytics 2 analytics in the audit slides Jim Kaplan CIA CFE
 
Basic Internal Auditing Presentation
Basic Internal Auditing PresentationBasic Internal Auditing Presentation
Basic Internal Auditing PresentationVernon Benjamin
 
IT General Controls
IT General ControlsIT General Controls
IT General ControlsCicero Ray Rufino
 
Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6Sharah Ayumi
 
Ch 10. documentation
Ch 10. documentationCh 10. documentation
Ch 10. documentationSazzad Hossain, ITP, MBA, CSCA™
 
Advancing internal audit analytics
Advancing internal audit analytics Advancing internal audit analytics
Advancing internal audit analytics PwC
 
Auditing in a computer environment copy
Auditing in a computer environment copyAuditing in a computer environment copy
Auditing in a computer environment copySaleh Rashid
 
The Internal Audit Framework
The Internal Audit FrameworkThe Internal Audit Framework
The Internal Audit FrameworkAhmad Tariq Bhatti
 
Chapter 1 auditing and internal control
Chapter 1 auditing and internal controlChapter 1 auditing and internal control
Chapter 1 auditing and internal controljayussuryawan
 
Auditing application controls
Auditing application controlsAuditing application controls
Auditing application controlsCenapSerdarolu
 
Audit planning
Audit planningAudit planning
Audit planningRichard Clarke Academy
 
Continuous Auditing, Monitoring & Data Analytics
Continuous Auditing, Monitoring & Data AnalyticsContinuous Auditing, Monitoring & Data Analytics
Continuous Auditing, Monitoring & Data AnalyticsCISA1567
 
The nature and purpose of auditing
The nature and purpose of auditingThe nature and purpose of auditing
The nature and purpose of auditingSyed Ali Gohar Shah Shah
 
Internal Auditor Roles
Internal Auditor RolesInternal Auditor Roles
Internal Auditor RolesIyad Mourtada, CMA, CIA, CFE, CCSA, CRMA, CPLP
 
Audit documentation
Audit documentationAudit documentation
Audit documentationVenkatesan Murali
 
COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)
COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)
COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)Rikesh Chaurasia
 
Use Of Techniques And Technology In Internal Audit
Use Of Techniques And Technology In Internal AuditUse Of Techniques And Technology In Internal Audit
Use Of Techniques And Technology In Internal AuditManoj Agarwal
 

More Related Content

What's hot

Auditing in Computerized Environment
Auditing in Computerized EnvironmentAuditing in Computerized Environment
Auditing in Computerized EnvironmentDr. Sushil Bansode
 
Basics in IT Audit and Application Control Testing
Basics in IT Audit and Application Control Testing Basics in IT Audit and Application Control Testing
Basics in IT Audit and Application Control Testing Dinesh O Bareja
 
Auditing in computerized environment.pptx
Auditing in computerized environment.pptxAuditing in computerized environment.pptx
Auditing in computerized environment.pptxinfantemiliya18
 
Computer-Assisted Audit Tools and Techniques
Computer-Assisted Audit Tools and TechniquesComputer-Assisted Audit Tools and Techniques
Computer-Assisted Audit Tools and Techniques_supriadi
 
Data analytics 2 analytics in the audit slides
Data analytics 2 analytics in the audit slides Data analytics 2 analytics in the audit slides
Data analytics 2 analytics in the audit slides Jim Kaplan CIA CFE
 
Basic Internal Auditing Presentation
Basic Internal Auditing PresentationBasic Internal Auditing Presentation
Basic Internal Auditing PresentationVernon Benjamin
 
Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6Sharah Ayumi
 
Advancing internal audit analytics
Advancing internal audit analytics Advancing internal audit analytics
Advancing internal audit analytics PwC
 
Auditing in a computer environment copy
Auditing in a computer environment copyAuditing in a computer environment copy
Auditing in a computer environment copySaleh Rashid
 
Chapter 1 auditing and internal control
Chapter 1 auditing and internal controlChapter 1 auditing and internal control
Chapter 1 auditing and internal controljayussuryawan
 
Auditing application controls
Auditing application controlsAuditing application controls
Auditing application controlsCenapSerdarolu
 
Continuous Auditing, Monitoring & Data Analytics
Continuous Auditing, Monitoring & Data AnalyticsContinuous Auditing, Monitoring & Data Analytics
Continuous Auditing, Monitoring & Data AnalyticsCISA1567
 

What's hot (20)

Auditing in Computerized Environment
Auditing in Computerized EnvironmentAuditing in Computerized Environment
Auditing in Computerized Environment
 
Basics in IT Audit and Application Control Testing
Basics in IT Audit and Application Control Testing Basics in IT Audit and Application Control Testing
Basics in IT Audit and Application Control Testing
 
Auditing in computerized environment.pptx
Auditing in computerized environment.pptxAuditing in computerized environment.pptx
Auditing in computerized environment.pptx
 
Computer-Assisted Audit Tools and Techniques
Computer-Assisted Audit Tools and TechniquesComputer-Assisted Audit Tools and Techniques
Computer-Assisted Audit Tools and Techniques
 
Ch 9. Internal Audit
Ch 9. Internal AuditCh 9. Internal Audit
Ch 9. Internal Audit
 
Data analytics 2 analytics in the audit slides
Data analytics 2 analytics in the audit slides Data analytics 2 analytics in the audit slides
Data analytics 2 analytics in the audit slides
 
Basic Internal Auditing Presentation
Basic Internal Auditing PresentationBasic Internal Auditing Presentation
Basic Internal Auditing Presentation
 
IT General Controls
IT General ControlsIT General Controls
IT General Controls
 
Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6Auditing by CIS . Chapter 6
Auditing by CIS . Chapter 6
 
Ch 10. documentation
Ch 10. documentationCh 10. documentation
Ch 10. documentation
 
Advancing internal audit analytics
Advancing internal audit analytics Advancing internal audit analytics
Advancing internal audit analytics
 
Auditing in a computer environment copy
Auditing in a computer environment copyAuditing in a computer environment copy
Auditing in a computer environment copy
 
The Internal Audit Framework
The Internal Audit FrameworkThe Internal Audit Framework
The Internal Audit Framework
 
Chapter 1 auditing and internal control
Chapter 1 auditing and internal controlChapter 1 auditing and internal control
Chapter 1 auditing and internal control
 
Auditing application controls
Auditing application controlsAuditing application controls
Auditing application controls
 
Audit planning
Audit planningAudit planning
Audit planning
 
Continuous Auditing, Monitoring & Data Analytics
Continuous Auditing, Monitoring & Data AnalyticsContinuous Auditing, Monitoring & Data Analytics
Continuous Auditing, Monitoring & Data Analytics
 
The nature and purpose of auditing
The nature and purpose of auditingThe nature and purpose of auditing
The nature and purpose of auditing
 
Internal Auditor Roles
Internal Auditor RolesInternal Auditor Roles
Internal Auditor Roles
 
Audit documentation
Audit documentationAudit documentation
Audit documentation
 

Viewers also liked

COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)
COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)
COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)Rikesh Chaurasia
 
Use Of Techniques And Technology In Internal Audit
Use Of Techniques And Technology In Internal AuditUse Of Techniques And Technology In Internal Audit
Use Of Techniques And Technology In Internal AuditManoj Agarwal
 
COMPUTER ASSISTED AUDIT TECHNIQUES (CAATS) / TABK
COMPUTER ASSISTED AUDIT TECHNIQUES (CAATS) / TABKCOMPUTER ASSISTED AUDIT TECHNIQUES (CAATS) / TABK
COMPUTER ASSISTED AUDIT TECHNIQUES (CAATS) / TABKCatur Setiawan
 
COMPUTER ASSITED AUDIT TOOLS AND TECHNIQUES
COMPUTER ASSITED AUDIT TOOLS AND TECHNIQUESCOMPUTER ASSITED AUDIT TOOLS AND TECHNIQUES
COMPUTER ASSITED AUDIT TOOLS AND TECHNIQUESDhina Pohan
 
Computerised Accounting System
Computerised Accounting SystemComputerised Accounting System
Computerised Accounting Systemengineer sood
 
Auditing tools and Techniques
Auditing tools and TechniquesAuditing tools and Techniques
Auditing tools and TechniquesAjilal
 
Duplicate Payments Analysis - FTSE100 construction company
Duplicate Payments Analysis - FTSE100 construction companyDuplicate Payments Analysis - FTSE100 construction company
Duplicate Payments Analysis - FTSE100 construction companyDataConsulting
 
Chapter 6: Transaction Processing and Financial Reporting Systems Overview (C...
Chapter 6: Transaction Processing and Financial Reporting Systems Overview (C...Chapter 6: Transaction Processing and Financial Reporting Systems Overview (C...
Chapter 6: Transaction Processing and Financial Reporting Systems Overview (C...Vhena Pilongo
 
Using MS Excel In Your Next Audit - Top Basic & Intermediate Techniques
Using MS Excel In Your Next Audit - Top Basic & Intermediate Techniques Using MS Excel In Your Next Audit - Top Basic & Intermediate Techniques
Using MS Excel In Your Next Audit - Top Basic & Intermediate Techniques Jim Kaplan CIA CFE
 
Tugas control & audit sistem informasi
Tugas control & audit sistem informasiTugas control & audit sistem informasi
Tugas control & audit sistem informasiNur Fatrianti
 
Control And Compliance In Public Sector Procurement
Control And Compliance In Public Sector ProcurementControl And Compliance In Public Sector Procurement
Control And Compliance In Public Sector ProcurementEe Chuan Yoong
 
COMPUTER ACCOUNTING
COMPUTER ACCOUNTING COMPUTER ACCOUNTING
COMPUTER ACCOUNTING naresh_101
 
CISA Domain 1 - IS Auditing (day 1)
CISA Domain 1 - IS Auditing (day 1)CISA Domain 1 - IS Auditing (day 1)
CISA Domain 1 - IS Auditing (day 1)Cyril Soeri
 
Advantage of audit
Advantage of auditAdvantage of audit
Advantage of auditWINNERbd.it
 

Viewers also liked (20)

COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)
COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)
COMPUTERIZED ACCOUNTING AND AUDITING TECHNIQUES (CAAT)
 
Use Of Techniques And Technology In Internal Audit
Use Of Techniques And Technology In Internal AuditUse Of Techniques And Technology In Internal Audit
Use Of Techniques And Technology In Internal Audit
 
COMPUTER ASSISTED AUDIT TECHNIQUES (CAATS) / TABK
COMPUTER ASSISTED AUDIT TECHNIQUES (CAATS) / TABKCOMPUTER ASSISTED AUDIT TECHNIQUES (CAATS) / TABK
COMPUTER ASSISTED AUDIT TECHNIQUES (CAATS) / TABK
 
COMPUTER ASSITED AUDIT TOOLS AND TECHNIQUES
COMPUTER ASSITED AUDIT TOOLS AND TECHNIQUESCOMPUTER ASSITED AUDIT TOOLS AND TECHNIQUES
COMPUTER ASSITED AUDIT TOOLS AND TECHNIQUES
 
6. audit techniques
6. audit techniques6. audit techniques
6. audit techniques
 
Computerised Accounting System
Computerised Accounting SystemComputerised Accounting System
Computerised Accounting System
 
Auditing tools and Techniques
Auditing tools and TechniquesAuditing tools and Techniques
Auditing tools and Techniques
 
computerized accounting
computerized accountingcomputerized accounting
computerized accounting
 
Chapter 6
Chapter 6Chapter 6
Chapter 6
 
Duplicate Payments Analysis - FTSE100 construction company
Duplicate Payments Analysis - FTSE100 construction companyDuplicate Payments Analysis - FTSE100 construction company
Duplicate Payments Analysis - FTSE100 construction company
 
Audit evidence questions
Audit evidence questionsAudit evidence questions
Audit evidence questions
 
Chapter 6: Transaction Processing and Financial Reporting Systems Overview (C...
Chapter 6: Transaction Processing and Financial Reporting Systems Overview (C...Chapter 6: Transaction Processing and Financial Reporting Systems Overview (C...
Chapter 6: Transaction Processing and Financial Reporting Systems Overview (C...
 
Using MS Excel In Your Next Audit - Top Basic & Intermediate Techniques
Using MS Excel In Your Next Audit - Top Basic & Intermediate Techniques Using MS Excel In Your Next Audit - Top Basic & Intermediate Techniques
Using MS Excel In Your Next Audit - Top Basic & Intermediate Techniques
 
Tugas control & audit sistem informasi
Tugas control & audit sistem informasiTugas control & audit sistem informasi
Tugas control & audit sistem informasi
 
Control And Compliance In Public Sector Procurement
Control And Compliance In Public Sector ProcurementControl And Compliance In Public Sector Procurement
Control And Compliance In Public Sector Procurement
 
COMPUTER ACCOUNTING
COMPUTER ACCOUNTING COMPUTER ACCOUNTING
COMPUTER ACCOUNTING
 
CISA Domain 1 - IS Auditing (day 1)
CISA Domain 1 - IS Auditing (day 1)CISA Domain 1 - IS Auditing (day 1)
CISA Domain 1 - IS Auditing (day 1)
 
James hall ch 6
James hall ch 6James hall ch 6
James hall ch 6
 
Computerized accounting.
Computerized accounting.Computerized accounting.
Computerized accounting.
 
Advantage of audit
Advantage of auditAdvantage of audit
Advantage of audit
 

Similar to Computer Assisted Audit Tools and Techniques - the Force multiplier in the battle against risk

Too much data and not enough analytics!
Too much data and not enough analytics!Too much data and not enough analytics!
Too much data and not enough analytics!Emma Kelly
 
How to find new ways to add value to your audits
How to find new ways to add value to your auditsHow to find new ways to add value to your audits
How to find new ways to add value to your auditsCaseWare IDEA
 
2013 ALPFA Leadership Submit, Data Analytics in Practice
2013 ALPFA Leadership Submit, Data Analytics in Practice2013 ALPFA Leadership Submit, Data Analytics in Practice
2013 ALPFA Leadership Submit, Data Analytics in PracticeAlejandro Jaramillo
 
How to Identify, Train or Become a Data Scientist
How to Identify, Train or Become a Data ScientistHow to Identify, Train or Become a Data Scientist
How to Identify, Train or Become a Data ScientistInside Analysis
 
Primed-AP Methodology
Primed-AP MethodologyPrimed-AP Methodology
Primed-AP MethodologyCDO Advisors
 
Introduction to Data Science (Data Summit, 2017)
Introduction to Data Science (Data Summit, 2017)Introduction to Data Science (Data Summit, 2017)
Introduction to Data Science (Data Summit, 2017)Caserta
 
Why Your Data Science Architecture Should Include a Data Virtualization Tool ...
Why Your Data Science Architecture Should Include a Data Virtualization Tool ...Why Your Data Science Architecture Should Include a Data Virtualization Tool ...
Why Your Data Science Architecture Should Include a Data Virtualization Tool ...Denodo
 
The Benefits of Applying Lean Sigma for Service
The Benefits of Applying Lean Sigma for ServiceThe Benefits of Applying Lean Sigma for Service
The Benefits of Applying Lean Sigma for ServiceWillie Carter
 
Enhancing Service Quality: Implementing Lean Sigma
Enhancing Service Quality: Implementing Lean SigmaEnhancing Service Quality: Implementing Lean Sigma
Enhancing Service Quality: Implementing Lean SigmaWillie Carter
 
Enhancing Service Quality: Implementing Lean Sigma
Enhancing Service Quality: Implementing Lean SigmaEnhancing Service Quality: Implementing Lean Sigma
Enhancing Service Quality: Implementing Lean SigmaWillie Carter
 
Data Analytics 3 Analytics Techniques
Data Analytics 3 Analytics Techniques Data Analytics 3 Analytics Techniques
Data Analytics 3 Analytics Techniques Jim Kaplan CIA CFE
 
ADV Slides: What the Aspiring or New Data Scientist Needs to Know About the E...
ADV Slides: What the Aspiring or New Data Scientist Needs to Know About the E...ADV Slides: What the Aspiring or New Data Scientist Needs to Know About the E...
ADV Slides: What the Aspiring or New Data Scientist Needs to Know About the E...DATAVERSITY
 
AI Orange Belt - Session 3
AI Orange Belt - Session 3AI Orange Belt - Session 3
AI Orange Belt - Session 3AI Black Belt
 
1.0 how to empower audit through data analytics for icai kolkata
1.0 how to empower audit through data analytics for icai kolkata1.0 how to empower audit through data analytics for icai kolkata
1.0 how to empower audit through data analytics for icai kolkataeirc_icai
 
Workshop_CITA2015
Workshop_CITA2015Workshop_CITA2015
Workshop_CITA2015Bebo White
 
Best practice for_agile_ds_projects
Best practice for_agile_ds_projectsBest practice for_agile_ds_projects
Best practice for_agile_ds_projectsKhalid Kahloot
 
Easy Analytics on AWS with Amazon Redshift, Amazon QuickSight, and Amazon Mac...
Easy Analytics on AWS with Amazon Redshift, Amazon QuickSight, and Amazon Mac...Easy Analytics on AWS with Amazon Redshift, Amazon QuickSight, and Amazon Mac...
Easy Analytics on AWS with Amazon Redshift, Amazon QuickSight, and Amazon Mac...Amazon Web Services
 
Bbbt presentation 210415_final_2
Bbbt presentation 210415_final_2Bbbt presentation 210415_final_2
Bbbt presentation 210415_final_2Roland Bullivant
 

Similar to Computer Assisted Audit Tools and Techniques - the Force multiplier in the battle against risk (20)

Too much data and not enough analytics!
Too much data and not enough analytics!Too much data and not enough analytics!
Too much data and not enough analytics!
 
How to find new ways to add value to your audits
How to find new ways to add value to your auditsHow to find new ways to add value to your audits
How to find new ways to add value to your audits
 
2013 ALPFA Leadership Submit, Data Analytics in Practice
2013 ALPFA Leadership Submit, Data Analytics in Practice2013 ALPFA Leadership Submit, Data Analytics in Practice
2013 ALPFA Leadership Submit, Data Analytics in Practice
 
Challenges of Executing AI
Challenges of Executing AIChallenges of Executing AI
Challenges of Executing AI
 
How to Identify, Train or Become a Data Scientist
How to Identify, Train or Become a Data ScientistHow to Identify, Train or Become a Data Scientist
How to Identify, Train or Become a Data Scientist
 
Primed-AP Methodology
Primed-AP MethodologyPrimed-AP Methodology
Primed-AP Methodology
 
Introduction to Data Science (Data Summit, 2017)
Introduction to Data Science (Data Summit, 2017)Introduction to Data Science (Data Summit, 2017)
Introduction to Data Science (Data Summit, 2017)
 
Why Your Data Science Architecture Should Include a Data Virtualization Tool ...
Why Your Data Science Architecture Should Include a Data Virtualization Tool ...Why Your Data Science Architecture Should Include a Data Virtualization Tool ...
Why Your Data Science Architecture Should Include a Data Virtualization Tool ...
 
The Benefits of Applying Lean Sigma for Service
The Benefits of Applying Lean Sigma for ServiceThe Benefits of Applying Lean Sigma for Service
The Benefits of Applying Lean Sigma for Service
 
Enhancing Service Quality: Implementing Lean Sigma
Enhancing Service Quality: Implementing Lean SigmaEnhancing Service Quality: Implementing Lean Sigma
Enhancing Service Quality: Implementing Lean Sigma
 
Enhancing Service Quality: Implementing Lean Sigma
Enhancing Service Quality: Implementing Lean SigmaEnhancing Service Quality: Implementing Lean Sigma
Enhancing Service Quality: Implementing Lean Sigma
 
Data Analytics 3 Analytics Techniques
Data Analytics 3 Analytics Techniques Data Analytics 3 Analytics Techniques
Data Analytics 3 Analytics Techniques
 
ADV Slides: What the Aspiring or New Data Scientist Needs to Know About the E...
ADV Slides: What the Aspiring or New Data Scientist Needs to Know About the E...ADV Slides: What the Aspiring or New Data Scientist Needs to Know About the E...
ADV Slides: What the Aspiring or New Data Scientist Needs to Know About the E...
 
AI Orange Belt - Session 3
AI Orange Belt - Session 3AI Orange Belt - Session 3
AI Orange Belt - Session 3
 
1.0 how to empower audit through data analytics for icai kolkata
1.0 how to empower audit through data analytics for icai kolkata1.0 how to empower audit through data analytics for icai kolkata
1.0 how to empower audit through data analytics for icai kolkata
 
Workshop_CITA2015
Workshop_CITA2015Workshop_CITA2015
Workshop_CITA2015
 
Best practice for_agile_ds_projects
Best practice for_agile_ds_projectsBest practice for_agile_ds_projects
Best practice for_agile_ds_projects
 
Easy Analytics on AWS with Amazon Redshift, Amazon QuickSight, and Amazon Mac...
Easy Analytics on AWS with Amazon Redshift, Amazon QuickSight, and Amazon Mac...Easy Analytics on AWS with Amazon Redshift, Amazon QuickSight, and Amazon Mac...
Easy Analytics on AWS with Amazon Redshift, Amazon QuickSight, and Amazon Mac...
 
3901_Nandyal
3901_Nandyal3901_Nandyal
3901_Nandyal
 
Bbbt presentation 210415_final_2
Bbbt presentation 210415_final_2Bbbt presentation 210415_final_2
Bbbt presentation 210415_final_2
 

Recently uploaded

8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCRashishs7044
 
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMVoces Mineras
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...ictsugar
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfpollardmorgan
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03DallasHaselhorst
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckHajeJanKamps
 
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxContemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxMarkAnthonyAurellano
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMintel Group
 
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu MenzaYouth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menzaictsugar
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Kirill Klimov
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607dollysharma2066
 
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / NcrCall Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncrdollysharma2066
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis UsageNeil Kimberley
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Pereraictsugar
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Servicecallgirls2057
 
8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCRashishs7044
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyotictsugar
 
IoT Insurance Observatory: summary 2024
IoT Insurance Observatory: summary 2024IoT Insurance Observatory: summary 2024
IoT Insurance Observatory: summary 2024Matteo Carbone
 

Recently uploaded (20)

8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
8447779800, Low rate Call girls in Uttam Nagar Delhi NCR
 
Memorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQMMemorándum de Entendimiento (MoU) entre Codelco y SQM
Memorándum de Entendimiento (MoU) entre Codelco y SQM
 
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
Global Scenario On Sustainable and Resilient Coconut Industry by Dr. Jelfina...
 
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdfIntro to BCG's Carbon Emissions Benchmark_vF.pdf
Intro to BCG's Carbon Emissions Benchmark_vF.pdf
 
Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03Cybersecurity Awareness Training Presentation v2024.03
Cybersecurity Awareness Training Presentation v2024.03
 
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deckPitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
Pitch Deck Teardown: Geodesic.Life's $500k Pre-seed deck
 
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptxContemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
Contemporary Economic Issues Facing the Filipino Entrepreneur (1).pptx
 
Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)Japan IT Week 2024 Brochure by 47Billion (English)
Japan IT Week 2024 Brochure by 47Billion (English)
 
Market Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 EditionMarket Sizes Sample Report - 2024 Edition
Market Sizes Sample Report - 2024 Edition
 
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu MenzaYouth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
Youth Involvement in an Innovative Coconut Value Chain by Mwalimu Menza
 
Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024Flow Your Strategy at Flight Levels Day 2024
Flow Your Strategy at Flight Levels Day 2024
 
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
(Best) ENJOY Call Girls in Faridabad Ex | 8377087607
 
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / NcrCall Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
Call Girls in DELHI Cantt, ( Call Me )-8377877756-Female Escort- In Delhi / Ncr
 
2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage2024 Numerator Consumer Study of Cannabis Usage
2024 Numerator Consumer Study of Cannabis Usage
 
Kenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith PereraKenya Coconut Production Presentation by Dr. Lalith Perera
Kenya Coconut Production Presentation by Dr. Lalith Perera
 
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort ServiceCall US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
Call US-88OO1O2216 Call Girls In Mahipalpur Female Escort Service
 
8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR8447779800, Low rate Call girls in Rohini Delhi NCR
8447779800, Low rate Call girls in Rohini Delhi NCR
 
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
No-1 Call Girls In Goa 93193 VIP 73153 Escort service In North Goa Panaji, Ca...
 
Investment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy CheruiyotInvestment in The Coconut Industry by Nancy Cheruiyot
Investment in The Coconut Industry by Nancy Cheruiyot
 
IoT Insurance Observatory: summary 2024
IoT Insurance Observatory: summary 2024IoT Insurance Observatory: summary 2024
IoT Insurance Observatory: summary 2024
 

Computer Assisted Audit Tools and Techniques - the Force multiplier in the battle against risk

  • 1. COMPUTER ASSISTED AUDIT TECHNIQUES The force multiplier in the battle against risk ISACA Evening Talk (20 August 2013, Tuesday) @ NLB 20 Aug 2013ISACA Evening Talk - CAATs 1
  • 2. AGENDA • Business case for CAATs and data analytics • Using CAATs to size up business processes quickly • Simple CAATs techniques that yield quick return on investment • Using CAATs for investigative work • How CAATs was successfully integrated into a Pre-CAATs audit team 20 Aug 2013ISACA Evening Talk - CAATs 2
  • 3. BUSINESS CASE FOR CAATS & DATA ANALYTICS Informal Poll: How many in the audience are using Computer Assisted Audit Tools/Techniques (CAATS) or Data Analytics regularly? 20 Aug 2013ISACA Evening Talk - CAATs 3
  • 4. BUSINESS CASE FOR CAATS & DATA ANALYTICS • Informal peer group of Heads of IA within institutions of a higher learning (IHL)s – unscientific straw poll: • 2012: 11% (1 out of 9 IHLs using CAATs) • 2013: 33% (3 out of 9 IHLs using CAATs) 20 Aug 2013ISACA Evening Talk - CAATs 4
  • 5. BUSINESS CASE FOR CAATS & DATA ANALYTICS Source: PWC 2013 State of the Internal Audit Profession Study 20 Aug 2013ISACA Evening Talk - CAATs 5
  • 6. 20 Aug 2013ISACA Evening Talk - CAATs 6
  • 7. BUSINESS CASE FOR CAATS & DATA ANALYTICS • Chief Audit Executives agree that CAATs is important • Adoption rates vary • Why are we not there yet in terms of CAATs use and implementation? 20 Aug 2013ISACA Evening Talk - CAATs 7
  • 8. CAATS CHALLENGES & OPPORTUNITIES Opportunities Allows us to leverage on available technology (PCs, Excel, CAATs tools) Enhances team productivity 100% or more testing (include prior years) Strategic • “We are looking at big picture, trends then we drill down to examine details.” Challenges Requires a fundamental paradigm shift Old habits die hard Sampling mindset Fear of the unknown • “The data must be exact and correct before I can trust it to do testing!” 20 Aug 2013ISACA Evening Talk - CAATs 8
  • 9. CAN’T SEE THE FOREST FOR THE TREES Perspective, Perspective and Perspective 20 Aug 2013ISACA Evening Talk - CAATs 9
  • 10. USING CAATS TO UNDERSTAND BUSINESS PROCESSES Audit Objectives Scope & Coverage Walkthrough Understand business process Key controls • Preventive • Detective • Corrective Evaluation of Controls Controls testing Or substantive procedures 20 Aug 2013ISACA Evening Talk - CAATs 10
  • 11. USING CAATS TO UNDERSTAND BUSINESS PROCESSES • Enterprises function in a data rich environment • Operational systems • Enterprise Resource Planning • Even stand-alone departmental applications also have own databases • And auditors have an eye for details which is useful for testing but… • Are we at risk of missing the forest for the trees? 20 Aug 2013ISACA Evening Talk - CAATs 11
  • 12. USING CAATS TO UNDERSTAND BUSINESS PROCESSES Understand business process Random or judgmental sampling (“30!”) Test for errors (Y/N?) • Yes – extend sample • No – yay! Pre- CAATs 100% of transactions in system Understand data • E.g. Fieldstats • E.g. Summarise • E.g. Pivot Note initial insights Post- CAATs 20 Aug 2013ISACA Evening Talk - CAATs 12
  • 13. USING CAATS TO UNDERSTAND BUSINESS PROCESSES ISACA IT Audit and Assurance Guideline G3 Use of Computer Assisted Audit Tools 1.4.3 CAATs can be used in performing various audit procedures including: • Tests of details of transactions and balances • Analytical review procedures • Compliance tests of Information Systems general controls • Compliance tests of IS application controls • Penetration testing 20 Aug 2013ISACA Evening Talk - CAATs 13
  • 14. USING CAATS TO UNDERSTAND BUSINESS PROCESSES Types of CAATs (G3 Use of CAATS) Generalised audit software •E.g. Excel, ACL, Caseware IDEA Utility Software Application Software Tracing and Mapping Customised Queries and Scripts 20 Aug 2013ISACA Evening Talk - CAATs 14
  • 15. SIMPLE CAATS THAT YIELD A QUICK RETURN ON INVESTMENT CAATS require investments in: Tools •Software licences •Hardware Techniques •Plan audits with CAATs in mind •Re-engineer audit procedures to use data and CAATs Time •Training of staff •Change management of mindsets and methods 20 Aug 2013ISACA Evening Talk - CAATs 15
  • 16. USING CAATS TO UNDERSTAND BUSINESS PROCESSES • Contoso (fictitious company) • Analysis of international electronic sales • Size up data quickly • How many records? => addresses completeness issue • What are the fields? => suggests what can be tested • Examples using IDEA and Excel • Fieldstats • Summarisation • Excel Pivot 20 Aug 2013ISACA Evening Talk - CAATs 16
  • 17. EXAMPLE 20 Aug 2013ISACA Evening Talk - CAATs 17 Disclaimer: • Not an “expert” in Excel or IDEA • There could be other better ways to do the analysis/tests shown • In fact, that is one of the challenges in CAATS – too many ways to perform the same function/test! • Paradox of choice – analysis paralysis
  • 18. SIMPLE CAATS THAT YIELD A QUICK RETURN ON INVESTMENT Sorting / Filtering •Top 10/20 high/low •Filter or Criteria transactions that go against business rules/logic •Common sense testing Duplicates, Gaps Test •Duplicates – testing data accuracy and integrity, especially payments of claims, invoices and receipts •Gaps – missing sequences as a test of completeness 20 Aug 2013ISACA Evening Talk - CAATs 18
  • 19. EXAMPLE 20 Aug 2013ISACA Evening Talk - CAATs 19
  • 20. SIMPLE CAATS THAT YIELD A QUICK RETURN ON INVESTMENT Aging (for date and time related data) • Account balances • Payables/creditors • Receivables/debtors • Inventory • Fixed assets • Time-sheets 20 Aug 2013ISACA Evening Talk - CAATs 20
  • 21. EXAMPLE 20 Aug 2013ISACA Evening Talk - CAATs 21
  • 22. SIMPLE CAATS THAT YIELD A QUICK RETURN ON INVESTMENT Ratios •Big picture •Pareto analysis (80-20) •Relativity between departments, business units, business lines Trends (across space and time) •Time •stratification •Place •geographical •department •business units 20 Aug 2013ISACA Evening Talk - CAATs 22
  • 23. EXAMPLE 20 Aug 2013ISACA Evening Talk - CAATs 23
  • 24. USING CAATS FOR INVESTIGATIVE WORK Finding the proverbial needle in the haystack Not knowing what you don’t know Zooming in on very specific type of transactions •filtering / criteria •key word detection •joining data from separate databases CAATs 20 Aug 2013ISACA Evening Talk - CAATs 24
  • 25. USING CAATS FOR INVESTIGATIVE WORK 20 Aug 2013ISACA Evening Talk - CAATs 25 Define the specific transactions or info needed Obtain data required --Typically requires multiple sources e.g. Finance, HR, Operational Depts Collate sufficient, appropriate evidence to substantiate wrong- doing
  • 26. USING CAATS FOR INVESTIGATIVE WORK Search •Functions / Formulas •IDEA - @ISINI •Excel – <Ctrl>+F Join/Match •Putting together disparate but related pieces together •IDEA – FIND, JOIN, APPEND, @MATCH Patterns •Summarisation by staff/dept/type of transaction •Stratification by dates •Ratios 20 Aug 2013ISACA Evening Talk - CAATs 26
  • 27. IMPLEMENTING CAATS: SOME THOUGHTS Pre-CAATs: education, sharing, change management CAATs implementation – Audit of Claims •Look for easy data-rich business processes CAATs training – in- house sharing and formal hands-on courses Audit Plan – consider CAATs, data available, useful analysis for raising observations 20 Aug 2013ISACA Evening Talk - CAATs 27
  • 28. IMPLEMENTING CAATS: SOME THOUGHTS •It is okay to start small but one should start with what you already have or with a small pilot •Learning from doing (and making small mistakes) is part of the journey Start Now •It is about changing mindsets to be open to technology/new approaches that is key in success •Convincing people to adopt a data-driven vs. intuition approach is important Mindset vs. Technology/Skills •Helpful to walk the talk Lead by Example 20 Aug 2013ISACA Evening Talk - CAATs 28
  • 29. IMPLEMENTING CAATS: SOME THOUGHTS 20 Aug 2013ISACA Evening Talk - CAATs 29 • Resources to get started – consider the following authors • ISACA IT Auditing Standards, Guidelines • David Coderre • Mark Nigrini
  • 30. YOONG EE CHUAN Email: yekker@gmail.com Mobile: 96882300 (Whatsapp/LINE) 20 Aug 2013ISACA Evening Talk - CAATs 30