Audit Software – NBC Institute

AAA – Nov 2016 – L3 – Q4a – Audit of IT Systems and Data Analytics

Evaluate the advantages and disadvantages of test data and audit software for compliance and substantive testing.

Question

You have been appointed as the Auditor of a company whose accounting transactions are processed using a computer. You have decided to use Computer-Assisted Audit Techniques (CAATs) to generate evidence for the audit assignment.

Required:
i. State FOUR advantages and THREE disadvantages of using test data in compliance testing of application controls. (7 Marks)
ii. List FOUR activities for which audit software may be used to perform substantive tests by the auditor. (4 Marks)
iii. List TWO advantages and TWO disadvantages of the use of audit software. (4 Marks)

Answer

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Tags: Application Controls, Audit Software, CAATs, Compliance Testing, Substantive Testing, Test Data
Level: Level 3

Topic: Audit of IT Systems and Data Analytics

AAA – Nov 2021 – L3 – Q3b – Audit of IT Systems and Data Analytics

Discuss audit team activities using CAATs on client premises and analyze two types of audit software.

Question

You have been appointed as the auditor of a company that processes its accounting functions using a computer system. You have decided to use computer-assisted audit techniques (CAATs) to generate necessary audit evidence for this engagement.

Required:

i. Discuss the activities members of the audit team could perform with their computers in the client’s office. (4 Marks)

ii. Analyze TWO types of audit software in use in computer-based information systems. (4 Marks)

Answer

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Tags: Audit evidence, Audit Software, CAATs, Computer-based audit, Data Analysis, IT Audit
Level: Level 3

Topic: Audit of IT Systems and Data Analytics

AA – Nov 2016 – L2 – Q2b – Audit and Assurance Evidence

Define audit software and test data, and explain the advantages of CAATs.

Question

Computer-Assisted Audit Techniques (CAATs) are the use of computers for audit work and comprise mainly audit software and test data.

Required:
Explain the terms ‘audit software’ and ‘test data’ and list the advantages of using CAATs in an audit.

Answer

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Tags: Audit Software, CAATs, Test Data
Level: Level 2

Topic: Audit and Assurance Evidence
Series: NOV 2016

AA – May 2021 – L2 – Q3 – Audit and Assurance Evidence

Identify substantive tests using audit software, potential problems with audit software, and explain auditing around the computer.

Question

Expert Ltd (Expert) is a wholesaler of furniture (such as chairs, tables, and cupboards). Expert buys the furniture from six major manufacturers and sells them to over 1,000 customers ranging from large retail chain stores to smaller owner-controlled businesses. The receivables balance includes customers owing up to GHȼ200,000 to smaller balances of about GHȼ20,000, all with different due dates for payments and credit limits. All information is stored on Expert’s computer systems, although previous audits have adopted an ‘audit around the computer’ approach.

You are the Audit Senior in charge of the audit of the receivables balance. For the first time with this client, you have decided to use audit software to assist with the audit of the receivables balance. IT staff at Expert are happy to help you, the Auditor. However, they cannot confirm the completeness of systems documentation and warn that the systems have very old operating systems, limiting file compatibility with modern programs.

To limit the possibility of damage to Expert’s computer files, a copy of the files will be provided by Expert’s IT staff for the Auditor to use with their own audit software.

Required:
a) State SIX (6) substantive tests that should be carried out using audit software on the receivables balance of Expert Ltd. (9 marks)

b) Identify FOUR (4) potential problems of using audit software at Expert Ltd. For each problem, explain how it can be resolved. (8 marks)

c) Explain the concept of “auditing around the computer” and discuss why this increases audit risk for the Auditor. (3 marks)

Answer

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Tags: Audit Around the Computer, Audit risks, Audit Software, Receivables, Substantive Test
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2021

AAA – May 2021 – L3 – Q5b – Audit-related services | Assurance services

Discuss how audit software can be used to audit revenue and trade receivables and evaluate the extent of reliance on internal auditor's use of embedded software.

Question

Mike Developers’ Audit Manager is of the view that audit software can be used effectively in the audit of revenue and trade receivables. He has discussed this with the firm’s computer audit department and with Mike Developers’ Finance Director, and this approach has been agreed as a feasible one. Furthermore, the Finance Director has asked the internal audit team to investigate the possibility of installing embedded software to help the external auditors in their work.

Required:

i) Describe, giving examples, how audit software, in general, could assist the audit firm in their audit of revenue and trade receivables. (6 marks)

ii) Discuss the extent to which the external auditor could rely on the results of the internal auditor’s use of embedded software. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Software, Embedded Software, Internal Audit, Revenue Audit, Trade receivables
Level: Level 3

Topic: Assurance services, Audit-related services
Series: MAY 2021

AAA – Nov 2016 – L3 – Q4a – Audit of IT Systems and Data Analytics

Evaluate the advantages and disadvantages of test data and audit software for compliance and substantive testing.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Application Controls, Audit Software, CAATs, Compliance Testing, Substantive Testing, Test Data
Level: Level 3

Topic: Audit of IT Systems and Data Analytics

AAA – Nov 2021 – L3 – Q3b – Audit of IT Systems and Data Analytics

Discuss audit team activities using CAATs on client premises and analyze two types of audit software.

Question

Required:

i. Discuss the activities members of the audit team could perform with their computers in the client’s office. (4 Marks)

ii. Analyze TWO types of audit software in use in computer-based information systems. (4 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit evidence, Audit Software, CAATs, Computer-based audit, Data Analysis, IT Audit
Level: Level 3

Topic: Audit of IT Systems and Data Analytics

AA – Nov 2016 – L2 – Q2b – Audit and Assurance Evidence

Define audit software and test data, and explain the advantages of CAATs.

Question

Computer-Assisted Audit Techniques (CAATs) are the use of computers for audit work and comprise mainly audit software and test data.

Required:
Explain the terms ‘audit software’ and ‘test data’ and list the advantages of using CAATs in an audit.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Software, CAATs, Test Data
Level: Level 2

Topic: Audit and Assurance Evidence
Series: NOV 2016

AA – May 2021 – L2 – Q3 – Audit and Assurance Evidence

Identify substantive tests using audit software, potential problems with audit software, and explain auditing around the computer.

Question

To limit the possibility of damage to Expert’s computer files, a copy of the files will be provided by Expert’s IT staff for the Auditor to use with their own audit software.

Required:
a) State SIX (6) substantive tests that should be carried out using audit software on the receivables balance of Expert Ltd. (9 marks)

b) Identify FOUR (4) potential problems of using audit software at Expert Ltd. For each problem, explain how it can be resolved. (8 marks)

c) Explain the concept of “auditing around the computer” and discuss why this increases audit risk for the Auditor. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Around the Computer, Audit risks, Audit Software, Receivables, Substantive Test
Level: Level 2

Topic: Audit and Assurance Evidence
Series: MAY 2021

AAA – May 2021 – L3 – Q5b – Audit-related services | Assurance services

Discuss how audit software can be used to audit revenue and trade receivables and evaluate the extent of reliance on internal auditor's use of embedded software.

Question

Required:

i) Describe, giving examples, how audit software, in general, could assist the audit firm in their audit of revenue and trade receivables. (6 marks)

ii) Discuss the extent to which the external auditor could rely on the results of the internal auditor’s use of embedded software. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Software, Embedded Software, Internal Audit, Revenue Audit, Trade receivables
Level: Level 3

Topic: Assurance services, Audit-related services
Series: MAY 2021

Question Tag: Audit Software

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AAA – Nov 2016 – L3 – Q4a – Audit of IT Systems and Data Analytics

Evaluate the advantages and disadvantages of test data and audit software for compliance and substantive testing.

AAA – Nov 2021 – L3 – Q3b – Audit of IT Systems and Data Analytics

Discuss audit team activities using CAATs on client premises and analyze two types of audit software.

AA – Nov 2016 – L2 – Q2b – Audit and Assurance Evidence

Define audit software and test data, and explain the advantages of CAATs.

AA – May 2021 – L2 – Q3 – Audit and Assurance Evidence

Identify substantive tests using audit software, potential problems with audit software, and explain auditing around the computer.

AAA – May 2021 – L3 – Q5b – Audit-related services | Assurance services

Discuss how audit software can be used to audit revenue and trade receivables and evaluate the extent of reliance on internal auditor's use of embedded software.

AAA – Nov 2016 – L3 – Q4a – Audit of IT Systems and Data Analytics

Evaluate the advantages and disadvantages of test data and audit software for compliance and substantive testing.

AAA – Nov 2021 – L3 – Q3b – Audit of IT Systems and Data Analytics

Discuss audit team activities using CAATs on client premises and analyze two types of audit software.

AA – Nov 2016 – L2 – Q2b – Audit and Assurance Evidence

Define audit software and test data, and explain the advantages of CAATs.

AA – May 2021 – L2 – Q3 – Audit and Assurance Evidence

Identify substantive tests using audit software, potential problems with audit software, and explain auditing around the computer.

AAA – May 2021 – L3 – Q5b – Audit-related services | Assurance services

Discuss how audit software can be used to audit revenue and trade receivables and evaluate the extent of reliance on internal auditor's use of embedded software.

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Question Tag: Audit Software

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AAA – Nov 2016 – L3 – Q4a – Audit of IT Systems and Data Analytics

Evaluate the advantages and disadvantages of test data and audit software for compliance and substantive testing.

You're reporting an error for "AAA – Nov 2016 – L3 – Q4a – Audit of IT Systems and Data Analytics"

AAA – Nov 2021 – L3 – Q3b – Audit of IT Systems and Data Analytics

Discuss audit team activities using CAATs on client premises and analyze two types of audit software.

You're reporting an error for "AAA – Nov 2021 – L3 – Q3b – Audit of IT Systems and Data Analytics"

AA – Nov 2016 – L2 – Q2b – Audit and Assurance Evidence

Define audit software and test data, and explain the advantages of CAATs.

You're reporting an error for "AA – Nov 2016 – L2 – Q2b – Audit and Assurance Evidence"

AA – May 2021 – L2 – Q3 – Audit and Assurance Evidence

Identify substantive tests using audit software, potential problems with audit software, and explain auditing around the computer.

You're reporting an error for "AA – May 2021 – L2 – Q3 – Audit and Assurance Evidence"

AAA – May 2021 – L3 – Q5b – Audit-related services | Assurance services

Discuss how audit software can be used to audit revenue and trade receivables and evaluate the extent of reliance on internal auditor's use of embedded software.

You're reporting an error for "AAA – May 2021 – L3 – Q5b – Audit-related services | Assurance services"

AAA – Nov 2016 – L3 – Q4a – Audit of IT Systems and Data Analytics

Evaluate the advantages and disadvantages of test data and audit software for compliance and substantive testing.

You're reporting an error for "AAA – Nov 2016 – L3 – Q4a – Audit of IT Systems and Data Analytics"

AAA – Nov 2021 – L3 – Q3b – Audit of IT Systems and Data Analytics

Discuss audit team activities using CAATs on client premises and analyze two types of audit software.

You're reporting an error for "AAA – Nov 2021 – L3 – Q3b – Audit of IT Systems and Data Analytics"

AA – Nov 2016 – L2 – Q2b – Audit and Assurance Evidence

Define audit software and test data, and explain the advantages of CAATs.

You're reporting an error for "AA – Nov 2016 – L2 – Q2b – Audit and Assurance Evidence"

AA – May 2021 – L2 – Q3 – Audit and Assurance Evidence

Identify substantive tests using audit software, potential problems with audit software, and explain auditing around the computer.

You're reporting an error for "AA – May 2021 – L2 – Q3 – Audit and Assurance Evidence"

AAA – May 2021 – L3 – Q5b – Audit-related services | Assurance services

Discuss how audit software can be used to audit revenue and trade receivables and evaluate the extent of reliance on internal auditor's use of embedded software.

You're reporting an error for "AAA – May 2021 – L3 – Q5b – Audit-related services | Assurance services"

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