The Effects of Computer Assisted Auditing Techniques and Auditing Tools (Caatts) on Auditing Activities
Keywords:
Computer assisted auditing techniques; auditing tools; auditing activities; developing countryAbstract
This research investigated the effects of computer assisted auditing techniques and auditing tools on the auditing activities. The researchers adopted a quantitative research methodology and the sample size consisted of 20 respondents in which the results from the survey were analyzed and presented using the SPSS version 12, graphs, tables and pie charts. The study revealed that CAATTs are used to automate audit tasks, and allows the auditor to analyze accounting data electronically when it is not quite possible to do so manually. Companies are investing in advanced technologies and auditors have to also invest in skills and in advanced capabilities for them to continue offering robust auditing services and to remain efficient and effective in the business environment since these advanced technologies are impacting how to audit. The study also reviewed adoption of advanced technology such as the artificial intelligence, block chain and cloud computing is still fairly low in Zimbabwe but in some few years to come most organizations will harness these powerful and robust technologies and auditors must be prepared to upgrade themselves and embrace these technologies.
References
Audit Practice Regulation 1009 ‘’Computer Based Auditing Techniques”.
ASA 240: The Auditor’ Responsibility to Consider Fraud in an Audit of a Financial Report.
AICPA (2012) Evolution of Auditing: From the Traditional Approach to the Future Audit.
IAASB (2018) International Standard on Auditing: ISA 200 Handbook.
Ahmi, A. and Kent, S. (2012) “The utilization of GAS by external auditors”, Managerial Accounting Journal, Vol. 28 Issue: 2, pp. 88-113.
Alexandra, K. and Charalambos, S. (2011) "Auditing in enterprise system environment: a
Synthesis", Journal of Enterprise Information Management. Vol. 24 Issue: 6, pp.494-519.
Appah, E. and Emeh, Y. (2011) “Information technology and internal auditors’: activities in Nigeria Asian J”, Information technology, 10(6), pp. 201-208.
Appah et al, (2013) “Auditors usage of CAATTs: Empirical evidence from Nigeria”, Applied Sciences, Engineering Technology, 6(2), pp.187-195.
Bierstaker, J., Javrin, D. and Lowe, D. J. (2014) “What factors influences auditor’s use of computer-assisted audit techniques? Advances in Accounting, 30(1), pp.67-74.
Ching, W. L. and Chih-Hung, W. (2011)” A selection model for audit software’’, Industrial Management and Data Systems, Vol. 111 issue: 5, pp.776-790.
Eleftese et al (2016) “The impact of information technology on audit process”.
Ernest and Young (2015) “Insights from External Journalists”, Academics, Practioneers and EY professionals.
Ernest and Young (2016) “Insights from External Journalists”, Academics, Practioneers and EY professionals.
Ernest and Young (2017) “Insights from External Journalists”, Academics, Practioneers and EY professionals.
Grabmann, E. and Hofer, D. (2014) “Impact Factors on the Development of Internal Auditing in the 21st Century”: Journal of Finance and Risk Perspectives, vol: 3 issue 3, pp. 67-80.
IFAC (2011) 'Technology and E-Business: Guide to practice management for small-and medium sized practices”: 2nd Ed, International Federation of Accountants.
IAASB (2017) “International Standard on auditing”: ISA 200 Handbook. Institute of Internal Auditors (2019) Report.
ISACA (2014) The use of CAATTS in Auditing Application controls.
Jackson, R., D. and Stent, J.W. (2014) Auditing Notes for South African Students 9th edition, Durban: LexisNexis.
KPMG (2017) Cognitive Technologies. Harnessing the Power of Cognitive Technology to Transform the Audit.
KPMG (2017) Harnessing the Power of Cognitive Technology to Transform the Audit, s.l.:KPMG.
KPMG (2017) Impact of digitisation on the audit. Audit committe news.
KPMG (2017) Investing in Innovation. Harnessing the Power of Cognitive Technology to Transform the Audit.
Macaulay, M. (2017) “How Cognitive technology is revolutionizing the Audit”, Financial Executives international.
Macaulay, M.(2017) Cognitive Technology to Transform the Audit. Harnessing the Power of Cognitive Technology to Transform the Audit, 13 March 2019.
Macaulay, M. T. (2018) “Digital innovation and how cognitive technology can enhance the audit quality”, Digital innovation and how cognitive technology can enhance the audit quality.
Mahzan, N. and Lymer, A. (2009) “Examining Adoption of Computer Assisted Audit Tools and Techniques (CAATTs): Cases of UK internal Auditors”, Proceedings of 12th International
Business Information Management Association (IBIMA) Conference, Kuala Lumpur, Malaysia.
Mahzan, N. and Veerankutty, F. (2011) “IT Auditing Activities of Public Sector Auditors in Malaysia”, African Journal of Business Management, 5(5). Pp.1551-1563.
Marx, B. et al (2016) Dynamic Auditing: A student guide 10th edition: Cape Town.
Miller, R. (2019) “Research instruments, Education Surveys”. Duquesne University.
Muhammad, A., Razi, H. and Madani, H. (2013) "An analysis of attributes that impact adoption of audit software: An empirical study in Saudi Arabia", International Journal of Accounting & Information Management, Vol. 21 Issue: 2, pp.170-188,
Omunuk, J.B. and Oni, A.A. (2015) “Computer Assisted Audit Techniques and Audit Quality in Developing Countries: Evidence from Nigeria”. Journal Internet bank Commer. pp. 20:127.
PCAOB (2015), Annual Report.
Pedrosa, I. and Costa, C.J. (2012) International Journal of Computer Information Systems and Industrial Management Applications, ‘’Computer Assisted Tools and Techniques in real world: CAATT’s applications and approaches in context’’, vol 4. pp. 161-168.
Price waterhouse Coopers (2017) “Artificial Intelligence and Robotics”, Leveraging artificial intelligence and robotics for sustainable growth.
PWC (2012) Computer Assisted Auditing Techniques (CAATTs): using automated tools to address common building society challenges. Date accessed 08 March 2019.
Ringdang, W., Sari, S. (2017) “Exploring the use of CAATTs and its Impact to the Transparency and Accountability of Financial Statements”, Journal of Theoretical and Applied information Technology: volume 95.no 24.
Schatsky, D. and Muraski, C. (2015) “Cognitive Technologies: The real opportunities for business”, Deloitte Review issue 16.
Senft et al (2009) Information Technology Control & Audit 3rd Ed, Malaysia: Aurbech Publications.
Sidhu, H. (2017) Driving large-scale connectivity and digital innovation across the assurance practice with game changing technologies and practices.
Shukarova–Savovska, K. (2017) “Audit data analytics; oppotunities and tips”, Centre for financial reporting reform.
Vasarhelyi et al (2014) “Embracing the automated audit”, How the Audit Data Standards and audit tools can enhance auditor judgment and assurance.
Venkatesh, V., Thong, J. Y. L. and Xu, X. (2012) “Consumer Acceptance and Use of Information Technology: Extending the Unified Theory of Acceptance and Use of Technology”, Forthcoming in MIS Quarterly. Vol. 36 (1), pp.157-178.
Wadesango, N., & Makerevi, C. (2018). Investigating the value creation of internal audit and its impact on company performance. Academy of Entrepreneurship, 24(3), 1-21.
Wadesango, N., & Mwandambira, N. (2018). Evaluating the impact of tax knowledge on tax compliance among small medium enterprises in a developing country. Academy of Accounting and Financial Studies Journal, 22(6), 1-14.
Wadesango, N., Nani, L., & Mhaka, C. (2017). A literature review on the effects of liquidity constraints on new financial product development. Academy of Accounting and Financial Studies Journal, 21(3), 1-11.
Wadesango, N., & Mhaka, C. (2017). The effectiveness of enterprise risk management and internal audit function on quality of financial reporting in universities. Journal of Economics and Behavioral Studies, 9(4), 230-241.
Wadesango, N., & Wadesango, O. (2016). The need for financial statements to disclose true business performance to stakeholders. Corporate Board: Role, duties and composition, 12(2), 77-84.
Wadesango, N., Mutema, A., Mhaka, C., & Wadesango, V.O. (2018). Tax compliance of small and medium enterprises through self-assessment system: Issues and challenges. Academy of Accounting and Financial Studies Journal, 22(2), 1-15.
ASA 240: The Auditor’ Responsibility to Consider Fraud in an Audit of a Financial Report.
AICPA (2012) Evolution of Auditing: From the Traditional Approach to the Future Audit.
IAASB (2018) International Standard on Auditing: ISA 200 Handbook.
Ahmi, A. and Kent, S. (2012) “The utilization of GAS by external auditors”, Managerial Accounting Journal, Vol. 28 Issue: 2, pp. 88-113.
Alexandra, K. and Charalambos, S. (2011) "Auditing in enterprise system environment: a
Synthesis", Journal of Enterprise Information Management. Vol. 24 Issue: 6, pp.494-519.
Appah, E. and Emeh, Y. (2011) “Information technology and internal auditors’: activities in Nigeria Asian J”, Information technology, 10(6), pp. 201-208.
Appah et al, (2013) “Auditors usage of CAATTs: Empirical evidence from Nigeria”, Applied Sciences, Engineering Technology, 6(2), pp.187-195.
Bierstaker, J., Javrin, D. and Lowe, D. J. (2014) “What factors influences auditor’s use of computer-assisted audit techniques? Advances in Accounting, 30(1), pp.67-74.
Ching, W. L. and Chih-Hung, W. (2011)” A selection model for audit software’’, Industrial Management and Data Systems, Vol. 111 issue: 5, pp.776-790.
Eleftese et al (2016) “The impact of information technology on audit process”.
Ernest and Young (2015) “Insights from External Journalists”, Academics, Practioneers and EY professionals.
Ernest and Young (2016) “Insights from External Journalists”, Academics, Practioneers and EY professionals.
Ernest and Young (2017) “Insights from External Journalists”, Academics, Practioneers and EY professionals.
Grabmann, E. and Hofer, D. (2014) “Impact Factors on the Development of Internal Auditing in the 21st Century”: Journal of Finance and Risk Perspectives, vol: 3 issue 3, pp. 67-80.
IFAC (2011) 'Technology and E-Business: Guide to practice management for small-and medium sized practices”: 2nd Ed, International Federation of Accountants.
IAASB (2017) “International Standard on auditing”: ISA 200 Handbook. Institute of Internal Auditors (2019) Report.
ISACA (2014) The use of CAATTS in Auditing Application controls.
Jackson, R., D. and Stent, J.W. (2014) Auditing Notes for South African Students 9th edition, Durban: LexisNexis.
KPMG (2017) Cognitive Technologies. Harnessing the Power of Cognitive Technology to Transform the Audit.
KPMG (2017) Harnessing the Power of Cognitive Technology to Transform the Audit, s.l.:KPMG.
KPMG (2017) Impact of digitisation on the audit. Audit committe news.
KPMG (2017) Investing in Innovation. Harnessing the Power of Cognitive Technology to Transform the Audit.
Macaulay, M. (2017) “How Cognitive technology is revolutionizing the Audit”, Financial Executives international.
Macaulay, M.(2017) Cognitive Technology to Transform the Audit. Harnessing the Power of Cognitive Technology to Transform the Audit, 13 March 2019.
Macaulay, M. T. (2018) “Digital innovation and how cognitive technology can enhance the audit quality”, Digital innovation and how cognitive technology can enhance the audit quality.
Mahzan, N. and Lymer, A. (2009) “Examining Adoption of Computer Assisted Audit Tools and Techniques (CAATTs): Cases of UK internal Auditors”, Proceedings of 12th International
Business Information Management Association (IBIMA) Conference, Kuala Lumpur, Malaysia.
Mahzan, N. and Veerankutty, F. (2011) “IT Auditing Activities of Public Sector Auditors in Malaysia”, African Journal of Business Management, 5(5). Pp.1551-1563.
Marx, B. et al (2016) Dynamic Auditing: A student guide 10th edition: Cape Town.
Miller, R. (2019) “Research instruments, Education Surveys”. Duquesne University.
Muhammad, A., Razi, H. and Madani, H. (2013) "An analysis of attributes that impact adoption of audit software: An empirical study in Saudi Arabia", International Journal of Accounting & Information Management, Vol. 21 Issue: 2, pp.170-188,
Omunuk, J.B. and Oni, A.A. (2015) “Computer Assisted Audit Techniques and Audit Quality in Developing Countries: Evidence from Nigeria”. Journal Internet bank Commer. pp. 20:127.
PCAOB (2015), Annual Report.
Pedrosa, I. and Costa, C.J. (2012) International Journal of Computer Information Systems and Industrial Management Applications, ‘’Computer Assisted Tools and Techniques in real world: CAATT’s applications and approaches in context’’, vol 4. pp. 161-168.
Price waterhouse Coopers (2017) “Artificial Intelligence and Robotics”, Leveraging artificial intelligence and robotics for sustainable growth.
PWC (2012) Computer Assisted Auditing Techniques (CAATTs): using automated tools to address common building society challenges. Date accessed 08 March 2019.
Ringdang, W., Sari, S. (2017) “Exploring the use of CAATTs and its Impact to the Transparency and Accountability of Financial Statements”, Journal of Theoretical and Applied information Technology: volume 95.no 24.
Schatsky, D. and Muraski, C. (2015) “Cognitive Technologies: The real opportunities for business”, Deloitte Review issue 16.
Senft et al (2009) Information Technology Control & Audit 3rd Ed, Malaysia: Aurbech Publications.
Sidhu, H. (2017) Driving large-scale connectivity and digital innovation across the assurance practice with game changing technologies and practices.
Shukarova–Savovska, K. (2017) “Audit data analytics; oppotunities and tips”, Centre for financial reporting reform.
Vasarhelyi et al (2014) “Embracing the automated audit”, How the Audit Data Standards and audit tools can enhance auditor judgment and assurance.
Venkatesh, V., Thong, J. Y. L. and Xu, X. (2012) “Consumer Acceptance and Use of Information Technology: Extending the Unified Theory of Acceptance and Use of Technology”, Forthcoming in MIS Quarterly. Vol. 36 (1), pp.157-178.
Wadesango, N., & Makerevi, C. (2018). Investigating the value creation of internal audit and its impact on company performance. Academy of Entrepreneurship, 24(3), 1-21.
Wadesango, N., & Mwandambira, N. (2018). Evaluating the impact of tax knowledge on tax compliance among small medium enterprises in a developing country. Academy of Accounting and Financial Studies Journal, 22(6), 1-14.
Wadesango, N., Nani, L., & Mhaka, C. (2017). A literature review on the effects of liquidity constraints on new financial product development. Academy of Accounting and Financial Studies Journal, 21(3), 1-11.
Wadesango, N., & Mhaka, C. (2017). The effectiveness of enterprise risk management and internal audit function on quality of financial reporting in universities. Journal of Economics and Behavioral Studies, 9(4), 230-241.
Wadesango, N., & Wadesango, O. (2016). The need for financial statements to disclose true business performance to stakeholders. Corporate Board: Role, duties and composition, 12(2), 77-84.
Wadesango, N., Mutema, A., Mhaka, C., & Wadesango, V.O. (2018). Tax compliance of small and medium enterprises through self-assessment system: Issues and challenges. Academy of Accounting and Financial Studies Journal, 22(2), 1-15.
Published
2020-10-19
How to Cite
Wadesango, N., & Nyakurera, N. (2020). The Effects of Computer Assisted Auditing Techniques and Auditing Tools (Caatts) on Auditing Activities: Array. Acta Universitatis Danubius. Œconomica, 16(6). Retrieved from https://dj.univ-danubius.ro/index.php/AUDOE/article/view/574
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Business Administration and Business Economics
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