Page 170 - DCOM204_AUDITING_THEORY

Auditing Theory

Notes 6. Describe the procedure to perform Computer assisted Auditing using generalized audit
package.
7. What do you mean by Generalized Audit Packages (GAPs)? Write down the typical steps
in using audit package.
8. Describe the various factors which determine the use of Computer assisted Audit Techniques
(CAAT).

9. What is Generalized Audit Package (GAP)? Describe the various facilities to be provided
by the GAP.
10. What major steps are required to be undertaken by the auditor prior to implementation of
a CAAT? Explain.
11. Write a short note on the White box Approach for Audit.
12. Describe the Integrated Test Facility (ITF) method used in conducting audit through
computer.
13. Write short note on Integrated Test Facility.
14. Write short note on the Program (Parallel) Simulation.

15. Explain the following techniques of audit used by internal auditors:
(a) System activity files interrogation.
(b) Program comparison
16. Explain “test data technique” of audit in a computerized environment with the help of test
pack approach.
17. Mention uses of CAATs. What factors should be considered in determining whether to use
CAATs?
18. Write short note on Data File Interrogation.
19. What considerations should be given while using CAATs in Small Business Computer
Environment? Discuss in brief.
Answers: Self Assessment

1. Complexity 2. Organizations
3. Effective 4. Installation
5. Auditor’s 6. Developed
7. Techniques 8. Fictitious

8.13 Further Readings

Books Contemporary Auditing – Real issues & Cases.
David Coderre, Internal Audit: Efficiency through Automation, John Wiley & Sons,
2009.

Dinkar Pagare, Principles and Practice of Auditing, Sultan Chand & Sons, Eleventh
edition, 2007.

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