generalized audit-software

Generalized Audit Software

BSA – 5 S.Y. 2016-2017

NDMU


the most common computer-assisted audit tool (CAAT) used in recent years

It is used to mine and analyse data (often in vast quantities) to identify anomalies, errors and omissions and is used in gathering audit evidence rather than documenting


It is an off-the-shelf package that can provide a means to gain access to and interrogate data maintained on computer storage media. It is one of the tools IT Auditors utilize to obtain evidence directly on the quality of the records produced and maintained by application systems.


GAS consists of a series of computer program routines that can read computer files, select desired information, perform repetitive calculations, and print reports in an Auditor-specified format. Generalized Audit Software enables Auditors to have direct access to computerized records and to deal effectively with large quantities of data.

Example of Generalized Audit Software

ACL IDEA

ACL (Audit Command Language)

• a data analysis software program that helps auditors remain current with changing technology. Its primary usefulness lies in its ability to perform analysis and audit tests on 100% of the data available rather than merely sampling the data. The ability to audit 100% of the available data assists auditors with identifying potential fraud patterns and data irregularities.

IDEA (Interactive Data Extraction & Analysis)

• Interactive Data Extraction and Analysis (IDEA) is a leading eAudit data-analytics software package. IDEA provides audit, finance and compliance professionals in industry and practice with an efficient and effective solution for high performance audits.

• IDEA is also used by tax authorities throughout the world (including the Revenue Commissioners) to interrogate taxpayer transaction and system data.

IDEA (Interactive Data Extraction & Analysis)

• Main functionalities: – Comprehensive analysis of transactional data – Analyse 100% of your data – Identify relationships, patterns and anomalies

Functions Explanation1. File or database access

Reads and extracts data from a client’s computer file or databases for further audit testing.

2. Arithmetic functions

Perform a variety of arithmetic calculations on transactions, files and databases.

3. Statistical analysis

Provide functions supporting various types of audit sampling.

4. Report generation

Prepare various types of documents and reports.

FUNCTION OF GAS

Functions Explanation

5. Examine records For completeness, consistency and correctness by scanning all records using specified criteria and to print out the exceptions.

6. Compare data on separate files

Where records on separate files should contain compatible information, a program can be used to determine if the information on various files agrees or to make other comparisons.

FUNCTION OF GAS

Functions Explanation

7. Select audit samples

The computer can be programmed to select samples from any machine-readable data in several different ways, including at random.

8. Print confirmation requests

• After a sample has been selected, the auditor can have the data printed on confirmation request forms.

• This is a useful time-saving device for the preparation of confirmations.

FUNCTION OF GAS

Generalized Audit Software can accomplish the following audit tasks:

1. Footing and balancing entire files or selected data items.2. Selecting and reporting detailed data contained on files.3. Selecting stratified statistical samples from data files.4. Formatting results of tests into reports.5. Printing confirmations in either standardized or special

wording.6. Screening data and selectively including or excluding

items.7. Comparing two files and identifying any differences.8. Recalculating data fields.

• Relatively easy to learn and use• Improved efficiencies by automating manual

procedures• Reduced risk by testing entire populations

reducing reliance on sampling• GAS can be applied to wide variety of clients with

minimal customization.• This is a single program that can be applied to a

wide range of tasks without having to incur the cost or inconvenience of developing individualized programs.

Advantages of GAS

• Provides documentation of each test performed in the software that can be used as documentation in auditor’s work papers

• Independent of the system being audited and needs a read-only copy of the file

Advantages of GAS

• The high initial cost of their development • It provides a limited ability to verify programming logic

because its application is usually directed to testing client files or databases.

• It involves auditing after the client has processed the data rather than while the data is being processed.

Disadvantages of GAS

Auditor can use computer audit tools to increase the efficiency of audit procedures

• GAS programs - Aid in performing direct tests of account balances maintained on computer files Computer aided audit technique (CAAT) - Perform common audit tasks on a variety of data files

USING GENERALIZED AUDIT SOFTWARE TO OBTAIN EVIDENCE

AUDITING IN PRACTICE - USING GAS TO TEST FINANCIAL ACCOUNT ASSERTIONS - RECEIVABLES

QUIZ!!

1. Generalized audit software packages are used to assist the auditor in performing substantive tests. ( T or F)2. Generalized audit software packages perform all of the following tasks except:a. Recalculate data fieldsb. Compare files and identify differencesc. Stratify statistical samplesd. Analyze results and form opinions

QUIZ!!3. What does the acronym ACL stand for?4. What does the acronym IDEA stand for?5. Give a function of GAS6-7. Examples of Generalized Audit Software8. consists of a series of computer program routines that can read computer files, select desired information, perform repetitive calculations, and print reports in an Auditor-specified format.9. One of the advantages of GAS is that its initial cost of development is high.10. One of the disadvantages of GAS is that it can be applied to wide variety of clients with minimal customization.

References:-http://www.informationactive.com/net/?p=822-http://www.topcaats.com/types-of-audit-software/-http://accounting-financial-tax.com/2009/11/techniques-and-technology-used-in-auditing/ -Accounting Information System Ninth Edition by James A. Hall

http://www.informationactive.com/net/?p=822

Using GAS to Access Simple File Structure

Simple File Structure

Production Inventory File

GAS

Transactions List

Auditor determines selection criteria (materiality threshold) and key fields to be retrieved

by GAS

GAS extracts data selected by auditor and produces a

list of inventory items to be counted as part of

substantive testing.

generalized audit-software

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