CAAT_ERP by cheekododo


									CAAT & ERP
Computer Assisted Audit
Techniques (CAAT)
   Two types of CAAT
       Software that generates the paperwork for the
        audit, such as word processing, spreadsheets
        and working papers solutions
       Software used for Analysis of financial
   From planning to reporting of audit
      System based
      Transaction based
      Automatic extraction and analysis of
   Common types of CAATs
       Generalized audit software performs automated functions. It is
        used for both test of controls and substantive tests.
       Utility software performs routine processing tasks, such as
        sorting and merging
       Application software tracing and mapping can follow an
        audit trail of information generated by the computer system as
        it processes transactions.
       Expert systems software automates the knowledge and logic of
        experts in a certain field to help an auditor with decision making
        and risk analysis.
Leading CAAT packages
   Audit Command Language (ACL)
   Interactive Data Extraction and Analysis
       Major functions includes
        1.   Aging – An auditor can test the aging of
             accounts receivable
        2.   Duplicate identification
        3.   Data Export to another applications
CAAT - Major functions includes
4.    Gap Identification – gaps in transactions
5.    Joining and merging – Two separate files may be
      merged and combined to match information
6.    Sampling – Samples for statistical analysis
7.    Sorting – Sorting information by required criteria
8.    Stratification – Organizing data by specific factor
9.    Total Fields – Totaling accurately
10.   Summarization – To identify patterns
Enterprise-wide Resource Planning

     What is ERP ?
   Environment for managing organizational resources
   Central database linked across organization function
   ERP connects all intra-functional subsystems
       Human resources
       The Financial accounting procedures
       Production
       Marketing
       Distribution
       Purchasing
       Receiving , processing orders & Shipping
   Inter-organization connectivity
       Suppliers
       Customers
       Distributors
       Banks
       Government Revenue systems
       Capital markets
       Securities and exchange
Benefits of ERP
   Facilitates demand analysis and material planning
   Human resources capacity building and planning
   Corporate governance planning
   Decreasing lead time , improvement in JIT
   ERPs coordination of all operating activities
    permits flexible responses to shift in supply and
   Disadvantage is its cost and complexity
ERP products (software's)
   Market leaders (SAP)
   Oracle
   People soft
   J.D Edwards
ERP helps in Business Process Reengineering
    Linking subunits by redesigning and
     conformance to standards
    Usually ERP comes after Organization
     reengineering planning
    Process changes to remove inefficiencies of
     leftovers and duplications
    ERP focus of above the line returns
     (Productivity , Process improvement, Customer
     satisfaction )
   Elimination of data redundancy via central
   Information about data items is stored once
    and all functions have access to it, thus
    when the item(such as price) is updated the
    change is effectively made for all
    functions. The result is reliability (data
   Small modules of ERP can be installed first and
    later connected to other application areas like e-
    commerce thorough middle-ware
   ERP that extends to customers and suppliers and
    other uses internet portals. Portal is a website
    through which authorized external users may gin
    access to the organization's ERP
ERP implementation
ERP implementation may take years, poor implementation may leave
    organization with inefficiencies
Step –1 Strategic planning : plan + Project teams and user groups
Step –2 Choose ERP software and consulting firm .
    I. On possibility is to choose the software before the consultants
    because the first decision may affect the other
    II. Another option is to hire consultant to help with the selection of
    the software , then another consultant to help with the implementation
Step- 3 Longest step Pre-implementation
    I. Reengineering areas and customization of software
    II. Data conversion process
    III. Testing ERP
New generation ERP (ERP II)
   Value added front-office functions and and
    Back-office features
       Customers applications, Suppliers
        /shareholders/owners connectivity
        Connectivity with strategic allies (the
        member s of trading community , business
   BACK_OFFICE functions
       Supply-chain management
       Customer relationship management
       Distribution channel management
ERP architecture
   Current ERP systems have a client-server
    configuration with scores of clients(users)
   THIN Client have a little processing ability but
    FAT client may have substantial processing
   Systems may have multiple servers to run
    applications and contains databases
    Its uses LAN/WAN network architecture
   ERP systems may use any of the available
    platform(operating systems and DBMS)

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