Computer Assisted Audit Tools (Research Paper Sample)

Name
Professor
Course
Date
Computer Assisted Audit Tools (CAAT)
Introduction
Computer Assisted Audit Tools (CAAT) is a tools mostly used by the auditors to facilitate their search for irregularities in the data files. Studies show that the CAAT is increasingly becoming popular among the accounting and auditing professionals with more organizations adopting the technique to be used by the internal auditors and the forensic accountants for extrapolating data for analysis as well as fraud detection. The prevalent use of CAAT in the business environment is a clear prove that it’s an important tool for most companies in enhancing the efficiency of their accounting department in providing more credible and analytical results. The following paper will discuss the current developments of the technique and its application in the accounting profession.
Application of CAAT in the accounting profession
Although the CAATs have been in existence for many years, accountants are now using the tool more than before, to analyze multiple data for inconsistencies or irregularities. The use and application of such improved tools in the accounting profession is becoming popular with the advancement of technology. With technology, accountants are able obtain large files of data and access improved tools such as the CAATs (Bourke 2).
By using the improved tool, having knowledge on computer programming is no longer a requirement for the accountants to enable them import and identify data to be analyzed. Instead, the accountant only needs to select the suitable or proper data files and then use core skills to carry out some tests on the collected data (Bourke 2). It should be noted that selecting the most suitable data files sometimes becomes tricky for the accountants. To address this issue, companies are including professionals holding a Certified Information Technology Professional (CITP) in their audit team (Bourke 2).
After the accountant selects the proper data files, he or she imports them into the CAATs tool which analyses the data automatically (Bourke 2). The tool has proved to perform various analysis techniques. The techniques include display criteria, stratification, summarization, statistical analysis, regression analysis, trend analysis, expressions, matching and parallel simulation among others. What’s even more interesting is not the number of techniques that can be performed by the CAAT, but the resources to educate the accountants or auditors in applying these techniques are available (Bourke 2).
Current developments
Today, more than ever, most companies and international organizations have become more conscious regarding the nature of technology in the business environment. We know that IT is extensively been incorporated in many areas of business and commerce across the world. The demand of well-educated and knowledgeable IT auditors is increasing because, with their skills and knowledge in computer technologies, they help in ensuring effective control of IT to manage information access and maintain the integrity of data. Studies show that most international organizations have advanced their need for improved IT control especially in business and commerce (Sandra, Fredrick & Aleksandra 5)
Technology such as the use of CAATs has proved to have an influence on at least three important areas in the business environment (Sandra, Fredrick & Aleksandra 5) Technology has not only impacted the control proces...