Slide 1: Essay Examples
Hello everyone and a very warm welcome to all of you for being here and giving me an opportunity to make you familiar with some of the concepts regarding automation of audit documentation and processes using the computer technology.
I am discussing this topic because increased global competiveness and rapidly changing marketplaces have obliged every business to become efficient in every organizational process.
Of all the business operations and processes, the audit (whether internal or external) forms an integral part of financial success because it is the accurate and timely information which attracts investors and helps the business to grow.
This is a complete roadmap to my entire presentation which will be discussed now to make you understand that how Computer Assisted Auditing Techniques could be used to Validate Data and System Integrity, what are the basic Functions of Audit Productivity Software (APS) and how APS could be used effectively in the systems designed.
All these headings have sub-headings revealing that a further discussion will be made on these topics very shortly.
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Under this section, various ways will be established in which CAAT could be used to validate the received and related system’s integrity.
Computer Assisted Auditing Techniques (CAAT) could be used to create large volume of electronic audit working papers quickly. This electronic activity keeps working papers on centralized audit database or files allowing audit teams to browse through existing and archived financial information with ease.
Additionally, CAAT enables auditors to electronically standardize forms and audit formats.
Computer Assisted Auditing Techniques (CAAT) assists auditors to detect fraud by performance and creation of the following:
CAAT confirms the validation and integrity of related system by evaluating the data found in financial records and statements by studying any relationship between the financial and non-financial data to determine whether certain account balances appear reasonable. Examples of such tools include ratios analysis, trend analysis and Benford's Law tests.
Data Analysis Reports
CAAT’s specific audit commands (like merging/joining data files and filtering records) helps a quick creation of electronic reports which assist not only audit teams but the managers as well to make timely decisions relying on an accurate volume of information.
Continuous monitoring through CAAT facilitates an ongoing process for acquisition, analysis and reporting of a particular financial data to determine and manage operational business risks. CAAT assists auditors to determine if the business consistently monitors the end-user activity on every computer system, business processes and transactions as well as application controls.
Software providing automated audit solutions and facilitates compliance management in audit reporting is known as Audit Productivity Software. The basic functions of Audit Productivity Software (APS) are discussed under this section.
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A. Productivity Appraisal
APS has an embedded function to appraise organizational performance while reporting audit. It can be used as a performance measurement tool that facilitates timely decisions to maximize the work productivity of the business (Senft & Gallegos, 2010).
B. Resource Optimization
APS is a fully-functional automation that aids in wastage reduction of resources which is achieved by optimal utilization of resources and required time to accomplish the performance objectives.
C. Improvement of Business Operations
APS has an automated function to assist audit teams for testing and modify business operations to support the desired audit work standards which could easily appraise system standards and efficiency. This leads to an increase in productivity and reduces non-value adding processes from the audit system.
APS functions contribute heavily to data management systems where crucial savings related to resource allocation and time management are witnessed as large volumes of data entries and report extractions are minimized. APS functions also allow statistical audit to be carried out without any hassle. APS allows different audit techniques to be integrated into a single system to realize greater operational efficiency and higher productivity.
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The Audit Productivity Software (APS) may used in the systems designed by keeping it independent and use of read-only copy of files to avoid corruption of any business data. APS could also be used to provide authentic and documented material of every audit test executed in the automated system that facilitates making of working papers.
Audit Productivity Software (APS) can be utilized to interrogate files of financial data and determine patterns about the data associated with fraudulent activities that is used by audit teams to develop and maintain a "fraud profile".
APS may be used in the systems designed for monitoring all of the business transactions on a regular basis. Continuous monitoring seems to be a most proactive and feasible approach to be followed for early detection of fraudulent activities.
APS can help audit teams to focus their professional efforts in areas containing greatest financial risk while disregarding low-risk business transactions from their occasional review and emphasize only those areas containing a higher possibility of fraudulent activities. APS could be used for information extraction from multiple files at the same time from several management systems for searching underlying relationships and patterns among the given data.
APS allow auditors to identify symptoms of a fraudulent activity early than its occurrence. This reduces the negative influence of many wrongdoings causing millions of dollars to be lost or destroys the business’ goodwill. APS can monitor major symptoms and keep track of trends which can prove to be a major restriction of fraud while preventing fraudulent activities and determination of frauds as soon as they occur