Auditors are faced with ever more complex highly distributed financial information systems, supported by large databases in various data elements. IT applications control have become increasingly pervasive within financial reporting processes as many of the controls have been automated over the initiation, processing, and reporting of transactions.
The use of CAAT enables audit professionals to analyse the data, detect mistakes, recommend steps to ensure better control and efficient functioning of business apart from offering compliances services. This initiative enables professionals to address the practical audit requirements and statutory compliances for businesses using CAAT tools.
The application of analytics’s has become essential to effectively audit today's highly computerized and integrated systems. CAATs have now matured to the point where auditors can realize significant benefits from their use:
• increased efficiencies and effectiveness
• audit quality
• reduced audit risks
• improved audit coverage
• cost reduction