Better Use Computer Assisted Auditing Techniques for Auditing Essay

Better Use Computer Assisted Auditing Techniques for Auditing - Essay Example The aim of this project is to give a better understanding of CAATs; this is further supported by practical illustrations and examples of CAATs. To start any audit, understanding and knowledge of the business should be gained during the planning stage. This knowledge of the business helps in analyzing the internal control systems, and then it is decided whether or not to rely on the internal control system. It is later decided upon the nature of the client and its system to use CAATs. The advantages of CAATs clearly outweigh its disadvantages and this technique clearly has an upper hand when it comes to processing large amounts of data. The other issue in this paper is the concern of using this technique after having proper analysis of the business being audited. Finally, the paper is concluded by pointing out that its benefits clearly outweigh its risk, how to plan for using the CAATs and recommended training of an IT audit specialist. Auditing is the process by which something is examined with a view to form an opinion. This allows users of that opinion to gain assurance that the opinion, process, or the information gathered can be trusted. The purpose of assurance services is to increase the confidence and reduce the risk of the user of those services. The main objective of auditing is to ensure that financial statements are free from material misstatement and are presented fairly by the management. An auditor carries out two types of assurance engagements, with one being the reasonable assurance engagement and the other being the limited assurance engagement. When giving out a reasonable assurance engagement, the auditor gathers sufficient and appropriate evidence to support the conclusion, as well as making it stronger. On the other hand, a limited assurance engagement gives out a negative assurance report and the evidence gathered in an assurance engagement is only related to the specific subject matter that is being audited