- CAATs are likely to be the only effective way of testing programmed controls. Computer programs often perform functions without leaving visible evidence and the controls inbuilt in such systems cannot be tested manually. E.g. it is not possible to test the effective operation of passwords manually
- CAATs are quicker and more efficient enabling the auditor to test a large volume of transactions quickly and accurately;
- Once acquired the use of CAATs is cost effective provided that they can be used in a large clients base;
- Use of CAATs and especially audit software enable the auditor to test the accounting system directly rather than relying on printouts which could be manipulated by the client;
- CAATs provide the auditor with additional options, there are certain audit procedures that can only be carried out through the use of CAATs
Wilfykil answered the question on February 22, 2019 at 08:09
-
Briefly explain how an audit firm may use third party confirmations to provide evidence in relation to six difference balance sheet items
(Solved)
Briefly explain how an audit firm may use third party confirmations to provide evidence in relation to six difference balance sheet items
Date posted:
February 22, 2019
.
Answers (1)
-
List four advantages and four disadvantages of using the risk-based audit approach when auditing the financial statements of limited companies
(Solved)
List four advantages and four disadvantages of using the risk-based audit approach when auditing the financial statements of limited companies
Date posted:
February 22, 2019
.
Answers (1)
-
State and briefly explain the action auditors should take if the management refuses to provide a letter of representation.
(Solved)
State and briefly explain the action auditors should take if the management refuses to provide a letter of representation.
Date posted:
February 22, 2019
.
Answers (1)
-
Explain the nature and purpose of a post-audit review
(Solved)
Explain the nature and purpose of a post-audit review
Date posted:
February 22, 2019
.
Answers (1)
-
Distinguish between a procedural audit and a balance sheet audit
(Solved)
Distinguish between a procedural audit and a balance sheet audit
Date posted:
February 22, 2019
.
Answers (1)
-
List three disadvantages of using standardized audit programmes and how these disadvantages can be avoided.
(Solved)
List three disadvantages of using standardized audit programmes and how these disadvantages can be avoided.
Date posted:
February 21, 2019
.
Answers (1)
-
Under what circumstances is one ineligible for appointment as an auditor of a company?
(Solved)
Under what circumstances is one ineligible for appointment as an auditor of a company?
Date posted:
February 21, 2019
.
Answers (1)
-
You have been asked by your firm to examine the payment vouchers of a company to establish the level of errors and then decide whether...
(Solved)
You have been asked by your firm to examine the payment vouchers of a company to establish the level of errors and then decide whether better results can be obtained through statistical techniques.
Required:
a) State the steps you would take in order to test the vouchers for the errors.
b) Why is it not satisfactory to pick vouchers from a limited period?
c) State under what circumstances statistical sampling is a good technique
Date posted:
February 21, 2019
.
Answers (1)
-
Outline the statutory provisions with regard to duties of external auditors
(Solved)
Outline the statutory provisions with regard to duties of external auditors
Date posted:
February 21, 2019
.
Answers (1)
-
Explain how an Internal Control Evaluation Questionnaire (ICEQ) differs from an Internal Control Questionnaire (ICQ).
(Solved)
Explain how an Internal Control Evaluation Questionnaire (ICEQ) differs from an Internal Control Questionnaire (ICQ).
Date posted:
February 21, 2019
.
Answers (1)
-
The auditing standard on subsequent events provide the basic principles and procedures as to the auditor‘s responsibilities and deal with:
i. Dating the auditor‘s report
ii. Audit...
(Solved)
The auditing standard on subsequent events provide the basic principles and procedures as to the auditor‘s responsibilities and deal with:
i. Dating the auditor‘s report
ii. Audit procedures
iii. Events after the date of the audit report.
Required:
a) In the context of subsequent events, what is the significance of the data of the auditor‘s report?
b) Outline the audit procedures considered necessary between the balance sheet date and the date of the auditor‘s report.
c) Summarise the appropriate actions of the auditor regarding events after the date of the audit report.
Date posted:
February 21, 2019
.
Answers (1)
-
Write in point form an audit programme to cover salary and wages of a small size firm.
(Solved)
Write in point form an audit programme to cover salary and wages of a small size firm.
Date posted:
February 21, 2019
.
Answers (1)
-
Does the auditor require a codified definition of ?reasonable care and skill or should this be left to professional judgment? Explain
(Solved)
Does the auditor require a codified definition of ―reasonable care and skill or should this be left to professional judgment? Explain
Date posted:
February 21, 2019
.
Answers (1)
-
Explain the auditor‘s planning process when planning for an audit of a new client.
(Solved)
Explain the auditor‘s planning process when planning for an audit of a new client.
Date posted:
February 21, 2019
.
Answers (1)