Computerised Audit

Auditing is the process of examining an organization’s financial records to ensure they are accurate and compliant with regulatory guidelines. In the past, auditing was a manual process that relied on paper records and human review. However, with the advent of computerized accounting systems, auditing has become increasingly automated.

Computerized auditing tools can examine large amounts of data quickly and efficiently, flagging any discrepancies for further review. This helps to improve the accuracy of audits and ensures that businesses are in compliance with regulations. Additionally, computerized auditing can help to prevent fraud by identifying unusual patterns or transactions that may be indicative of criminal activity.

Overall, computerized auditing provides many benefits for businesses and organizations. It can help to improve the accuracy of financial records, ensure compliance with regulations, and prevent fraud.

The introduction of computers has drastically changed accounting systems and methods – from pen and paper to electronic resources. This has had a great impact on following audit procedures, as well as internal control and audit trails. In auditing, my topic is Computerized Information System (CIS). The reason this topic is included in auditing curriculum is because of the rampant changes happening in our society.

The other purpose is that almost all businesses, both big and small, public and private have automated their records.

The use of computer in auditing can be classified into two:

1) Using computer as an audit tool

2) Use of computer in preparing audit working papers

Using computers as an audit tool involves using various types of software to obtain information that would otherwise be unavailable or very difficult to obtain. The use of computers in preparing audit working papers involve the manipulation of data to produce information that is useful in planning and conducting the audit.

There are many advantages in using computers in auditing. Some of these advantages are:

– Speed – With the help of computers, transactions can be processed very quickly.

– Accuracy – Computers can perform calculations with great accuracy and speed.

– Flexibility – Computers offer a lot of flexibility in extracting and manipulating data.

– Storage – Computers have large storage capacity which can be used to store transaction records and other relevant information.

– Communication – Computers can be used to communicate with clients and other parties involved in the audit process.

There are also some disadvantages in using computers in auditing which include:

– Cost – The initial cost of purchasing and setting up a computer system can be quite high.

– Maintenance – A computer system requires regular maintenance and updates in order to function properly.

It’s an accurate statement to say that the world is constantly evolving before our very eyes. We can observe this through changes in things such as government, education, social interaction, technology and economics. In many cases today, work environments necessitate the use of computers which then requires auditing information systems to be computerized. Consequently, all over the globe computers have become increasingly essential for a nation’s growth.

The term “computerized auditing” generally refers to the application of computer-assisted auditing techniques and tools during an audit engagement. The use of computers in auditing has been increasing steadily over the years as they provide many advantages over manual systems.

Some of the benefits of using computerized auditing tools include:

– Increased accuracy and efficiency

– Reduced costs

– Greater flexibility

– Faster turnaround time

Computerized auditing also helps to ensure compliance with standards and regulations. In addition, it can help prevent and detect fraud.

There are a few challenges that need to be considered when implementing computerized auditing tools, such as:

– Ensuring data security and integrity

– Maintaining audit trails

– Managing change

Computer information systems have become commonplace in business operations, even for smaller entities. In recent years, technology has progressed rapidly and computer use is now practical and essential for many businesses. The Philippines is one of the countries that has been able to adopt these changes quickly according to experts.

The use of computers in auditing has become so commonplace that it is difficult to imagine conducting an audit without them. Computerized systems have affected every area of auditing.

Computer-assisted audit techniques (CAATs) are now available for almost all areas of the audit, from performing analytical review procedures to testing internal control.

Computers can be used effectively at all stages of the audit process, from planning through fieldwork to reporting.

Auditors use computers in their day-to-day work and increasingly rely on computer-generated data as a source of evidential matter.

This shift towards technology-based approaches has raised new challenges for auditors. In particular, they need to have a good understanding of computer-based information systems and the technologies used to develop and operate them.

With the increased use of computers, professional accountants now have new opportunities–and problems. Additionally, auditors need to know how to use computers more than ever because of said demand.

However, the development of computer technology has not been matched by a commensurate development of auditing theory and practice.

One of the main challenges that auditors face is that there is still a lack of understanding about how to apply computerized audit techniques in order to carry out an effective and efficient audit. In order to overcome this challenge, accountants and auditors need to be proactive in their approach to learning about and keeping up-to-date with computerized audit techniques.

Some of the benefits of using computerized audits include:

– Increased efficiency and accuracy

– Reduced costs

– Increased speed and flexibility

Overall, computerized audits offer many advantages and benefits that can help accountants and auditors to carry out their work in a more effective and efficient manner. However, it is important to note that computerized audits also pose some challenges that need to be overcome in order to ensure that they are carried out effectively.

If we didn’t have computers, auditing would not be able to keep up with the high demand. Just think about conducting an audit without the usage of a computer. It would be very difficult for the auditor because humans are prone to error. Incorporating CIS in auditing is tough.

As we all know, the goal of an audit is to examine an organization’s financial statements and ensure that they are free of material misstatement, whether due to fraud or error.

Computer-assisted auditing tools (CAATs) can help in this process by providing objective evidence to support auditor’s assertions. CAATs can be used for a variety of tasks, including data analysis, sampling, and testing controls.

Some popular CAATs include:



– Excel


These tools can be used to automate many of the tasks involved in the audit process, including:

– Collecting and analyzing data

– Identifying potential areas of risk

– Designing and testing audit procedures

– Generating reports

CAATs can save time and resources by automating repetitive tasks, and they can also improve the accuracy of audits by providing objective evidence to support auditor’s assertions. In addition, CAATs can help to identify potential areas of risk that may not be apparent from reviewing financial statements alone.

While CAATs can offer many benefits, there are also some challenges associated with their use. CAATs can be costly to purchase and maintain, and they require a certain amount of training and expertise to use effectively. In addition, CAATs can sometimes produce false positives or negatives, which can lead to incorrect conclusions about the riskiness of an organization.

Overall, CAATs can be a valuable tool for auditors, but they should be used in conjunction with other audit procedures to ensure the accuracy and completeness of audits.

CAATs are not a perfect solution, but they can save time and resources while also improving the accuracy of audits. When used correctly, CAATs can be a valuable addition to any auditor’s toolkit.

Leave a Comment