Computer Assisted Auditing Techniques (CAATs) range from generalized audit software to utility software to specific application software. Many companies now offer online auditing systems. An online package - at its best - will allow for instant transfer of data and work smoothly with a corporation’s intranet.

 “It is remarkable how much my workload has changed,” said Carl Ashley, CPA, an independent auditor in Washington D.C. who supervises the auditing of a variety of non-profit organizations. “It’s not so much that it has lessened - because it hasn’t. But the nature of the operations have shifted dramatically, and nothing is responsible for that as much our GAS (Generalized Auditing Software) package.”

 “I’ve been doing this since 1978, and comparing the two jobs, then and now, well, there’s very little resemblance,” Ashley added.

 With many new companies storing their data in ways that cannot be accessed manually, the CAAT becomes a necessary part of any successfully up-to-date audit. But which program is right for you?

 Specialized audit software is comprised of one or more program routines that are customized to suit specific type of audit. GAS consists of one or more routines that are applicable to a diverse range of audit situations.

 Here are the things you can expect from a solid computer-assisted auditing program:

 ·         Quick Identification of Unusual or Exceptional Deviance from Standards - Computer-assisted auditing can be especially effective in identifying significant cases of attempted fraud. Because of its capacity for simultaneously comparing many fields of information for allowable values, computer-assisted auditing can be a powerful tool in the review of larger firms or corporations.

 ·         Convenience - The paperless system is much more easily charted and organized, and includes features which can transform a maze of figures into a balance sheet of well-organized sums. As many newer dot-coms eschew the traditional paper-based office environment, computer-assisted auditing has become a must-have for auditors in this emerging sector of the economy.

 ·         Generation of Figure Analyses Beyond the Analyses Currently Available to Auditors - With various methods of file stratification, any population can be analyzed based on its groupings-whether those groupings are in value, dates, or codes. When an auditor tackles the more difficult portions of his or her job, when he or she must gauge trends in borrowing, inventory maintenance, or loan volume, a computer-assisted auditing program will perform the required tasks with great speed and accuracy.

 ·         Backup for Any Calculations the Auditor Has Made Manually - These programs have flawless accuracy and are an ideal second-line of defense in the struggle to render an audit with exactitude. Field statistics for a database, statistical information such as averages and maximum/minimum value, or even complex formulae can be tested with many computer-assisted auditing platforms. With the help of a CAAT, much of the time lost to proving calculations can be regained, drastically reshaping the amount of time needed to complete a system-wide audit.

 ·         Easy Sampling - Statistical sampling is a common means of developing a complex evaluation that is valid for a broader population than can be tested. Functions such as Monetary Unit Sampling, among others, are extremely difficult to implement manually. Most computer-assisted auditing software options offer a wide-variety of sampling options for the auditor.

 ·         Reduced Dependence on Non-Auditing Personnel - A difficulty of any audit can be ensuring that the members of the auditing team are all up to speed on the most current information about the company, the industry, and the technology being used. Utilizing CAATs will minimize the number of non-auditing personnel who must be relied upon for their skill, insight, and honesty.

 ·         Disappearance of More Menial Tasks Associated With the Audit - Though accurate repetition is still among the most important skills of the auditor, many of the more routine functions of the auditing process will now be automated. This will allow the auditor more control over the entire audit, more ability to supervise its individual parts.

 The immediate future should also hold many exhilarating developments.

 Many new CAAT packages come in the form of integrated databases that use database management systems and contain complex data structures. Computer networks are increasing the ways in which entire systems become interwoven and interdependent. Long gone are the days when geographically scattered operations could be assessed independently. Artificial intelligence is now introducing knowledge-based software into the audit process.

 The future holds a revolution in business processes. Already, we are watching the workplace be transformed by technological advances and gains. Soon, the individual auditor will have an enormous amount of technical power as close as the click of a mouse.