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					PLANNING & MANAGING CAAT
Why CAATs?
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Technology is influencing auditing External and Internal Auditors will soon routinely audit data electronically Electronic access to data can be a competitive advantage Client departments are now better able to meet auditor’s requests Hardware and software advances make it technologically feasible

PLANNING & MANAGING CAAT
Business Reasons to Pursue CAATs
CAATs can:  Address client expectations  Improve audit quality & reduce risk  Facilitate the development of value-added suggestions  Identify & extend services offered by internal audit  Improve technology & information systems awareness and skills  Potentially increase audit efficiency  Maintain competitive edge in the marketplace

PLANNING & MANAGING CAAT Historical Problems with CAATs
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Opportunities not recognized Tasks required to complete work not fully understood Problems not identified until late Final costs often exceeded budget Tools difficult to use Specialist involvement necessary

PLANNING & MANAGING CAAT
Lessons Learned
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Effective process required to control investment Need appropriate planning to prevent problems Effective identification of opportunities CAATs tools should be readily usable Need full commitment to perform required data acquisition Understand the MIS environment

PLANNING & MANAGING CAAT
CAAT Approach Questions/Decisions
1. Should the Internal Audit team pursue CAATs? 2. Can the data be provided and does it exist in a suitable format? 3. Does the audit team have the skills to acquire data? 4. Do the internal auditors have the skills to analyze data?

PLANNING & MANAGING CAAT
CAATs – Data Acquisition
Client Group or Department
System
The “Data”
Transfer

Internal Audit


Record Descriptions MIS Total Reports

Transfer & Definition

Data

Application

Data Integrity Reports Total Reports

Programs

Management Reports Financial Reports

Verify & Reconcile

PLANNING & MANAGING CAAT
Process for Acquiring and Analyzing Data
1
Planning– Identify Opportunity

:
Draft Work Pr ogram

N ote – Constant c ommunication regarding: a) s tatus update, b) GO/STOP de cis ion, a nd c) C AATs s pecialis t involvement.

Planning–Tes t Approa ch (Inve stm ent)

Ex ec ut ion– Fie ldwork (Pre lim inar y and/or Fina l)

2
Design & Assessment

3
Feasibility (Test Data)
Acquisit. Analysi s

4
Acquisition (Final Data)

5
Analysis (Final Data)

6
Follow-up Conclude & Report

C ontingenc y Pr oc edure s


				
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posted:2/1/2010
language:English
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