INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 7, ISSUE 11, NOVEMBER 2018 ISSN 2277-8616

The Role of Computer Assisted Audit Technique

Azhar Susanto, Meiryani

Abstract: Audit is an integral part of the modern business environment. Audit develops, from financial audits to other types of audits, such as
management, operational, performance, quality, environment, human resources, information technology audits and others. To state the level of
conformity, the auditor requires the collection and testing of audit evidence. Audit evidence can be in the form of physical evidence, documentary
evidence, testimony evidence, and analyst evidence. The increasing use of information technology/computers in data processing organizations has
made changes in the form of audit evidence. If audit evidence as a result of a computer process cannot be seen then it is impractical for the auditor to do
manual testing, so that the auditor must consider the use of Computer Assisted Audit Techniques.

Index Terms: Computer Assisted; Audit Technique Role; Computer Assisted Audit Technique.
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1 INTRODUCTION He use of IT as a device used by companies to produce

Audit techniques are the ways in which the auditor obtains information as data objects is as follows:
evidence in comparing the actual situation with the situation 1) Changes in the form of information as audit evidence from
that should. Audit techniques are related to audit procedures, information that uses paper (visual) into electronic (non-
where the audit techniques are used in an audit procedure to visual) forms stored in computer storage media.
achieve audit objectives. Auditors will find many environments 2) Changes in the form of audit evidence in turn affect the
where data is stored more in electronic media than paper way to obtain audit evidence and how to evaluate the audit
media. The auditor must determine how the company uses evidence that has been obtained.
information technology systems to initiate, record, process and 3) The volume of data stored in a company (multinational),
report transactions in financial statements. Actually there is no has reached a very large size, which is reaching terra byte
difference in the audit concept that applies to complex systems capacity, maybe even penta bytes.
and manual systems, the only difference being specific 4) Changes in the audit trail, a mechanism that allows
methods that fit the situation of the existing accounting chronological tracking of a transaction from beginning to
information system. This understanding is needed in order to end or vice versa.
get a good internal control understanding in order to plan the 5) There is a change in the internal control structure of the
audit and determine the nature, timing and expansion of the company, especially those relating to data processing.
testing to be carried out. In the audit standard regulates audit
procedures in a computer-based information system All of the above influences make Computer-Assisted Audit
environment. According to the standard basically auditing Techniques a must for a Public Accountant Office, if you want to
auditors do the following tests: provide the best service to its clients, with quality audit work, on
1. Test compliance with applicable procedures time, and the cost and energy efficiency of auditing.
(authorization, completeness, accuracy).
2. Substantial test (test of transaction and processing 2 LITERATURE REVIEW
results), and CAAT is every use of information technology as a tool in audit
3. Reprocessing transactions in compliance or substantive activities. CAAT is defined as the use of devices and
testing procedures. techniques for auditing computer applications and retrieving
and analyzing data. CAAT is a device and technique used to
The type and extent of testing does not depend on the size of test (both directly and indirectly) the internal logic of a
the company but is determined by the complexity of the computer application that is used to process data. If the
existing IT environment, such as the extent of the online auditor chooses to use computer-aided audit techniques, then
system used, the type and significance of financial the auditor can choose the approach he uses, namely whether
transactions, as well as the nature of documents/databases, to carry out application testing or perform substative testing. If
and the programs used. Journal the article is being submitted to the auditor chooses to do an application test, then there are
and the manuscript identification number. Click the forward several approaches that can be done including:
arrow in the pop-up tool bar to modify the header or footer on
subsequent pages. 1. Data Test
This method uses input data that has been prepared by the
auditor and tested the data with a copy of the auditee
application auditor software. If there are inappropriate results,
this may be an indication of logical deviation or control
mechanisms.
_______________________________
2. Integrated Test Facility (ITF)
An automated engineering approach that allows auditors to
 Azhar Susanto; Accounting Department, Faculty of Economics and
test the logic flow and control of an application during normal
Business, Padjadjaran University, Bandung, Indonesia
operation.
 Meiryani; Accounting Department, Faculty of Economics and
Communication, Bina Nusantara University, Jakarta, Indonesia 3. Parallel Simulation (PS)
11480 This approach requires the auditor to create a program that
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INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 7, ISSUE 11, NOVEMBER 2018 ISSN 2277-8616

simulates certain main functions of the application being application packages from Microsoft, such as Excel.
tested. Computer-assisted audit approach is a very useful audit
method for substantive testing or company files/data/records.
Many computerized accounting systems in carrying out certain Computer-assisted audit techniques involve computers or
tasks do not produce visible evidence. The absence of audit software to help test and evaluate company files/data
evidence that can be seen can occur at various stages of the relatively easily compared to testing of programs and data
accounting process — such as: processing procedures. Examination of program or system
a. The input document may not exist if the sales order is requires certain auditor expertise in information technology.
entered into the system online. In addition, accounting
transactions, such as calculation of price discounts and 3 DISCUSSION
interest, can be triggered by an unauthorized computer Many computerized accounting systems in carrying out certain
program that can be viewed for each transaction tasks do not produce visible evidence. The absence of
individually. evidence that can be seen can occur at various stages of the
b. The system can not produce an audit trail (audit trail) that accounting process — such as:
can be seen for transactions processed through a a. The input document may not exist if the sales order is
computer. Submission of goods and invoices from entered into the system online. In addition, accounting
suppliers can be compared with a computer program. In transactions, such as calculation of price discounts and
addition, program control procedures, such as checking interest, can be triggered by an unauthorized computer
customer credit limits, can provide evidence that can be program that can be viewed for each transaction
seen only on the basis of irregularities. In this case, there individually.
is no evidence that can be seen that all transactions have b. The system can not produce an audit trail that can be
been processed. seen for transactions processed through a computer.
c. Output reports can not be produced by the system. In Submission of goods and invoices from suppliers can be
addition, a printed report can only contain a total summary compared with a computer program. In addition, program
while the details that support the report remain in the control procedures, such as checking customer credit
computer file. limits, can provide evidence that can be seen only on the
basis of irregularities. In this case, there is no evidence
In these circumstances, it is not practical for the auditor to do that can be seen that all transactions have been
manual testing. The effectiveness and efficiency of audit processed.
procedures through the use of TABK in obtaining and c. Output reports can not be produced by the system. In
evaluating audit evidence, are as follows: addition, a printed report can only contain a total summary
a. Some transactions can be tested more effectively for the while the details that support the report remain in the
same level of cost by using a computer to check all or computer file.
more transactions compared to if done manually.
b. In the application of analytical procedures, transactions or In these circumstances, it is not practical for the auditor to do
account balances can be reviewed and printed on reports manual testing. The effectiveness and efficiency of audit
for unusual items in a more efficient way by using a procedures through the use of CAAT in obtaining and
computer when compared to the manual method. evaluating audit evidence, are as follows:
c. The use of the TABK can make additional substantive a. Some transactions can be tested more effectively for the
testing procedures more efficient than if the auditor places same level of cost by using a computer to check all or
trust in the control and testing of the relevant controls. more transactions compared to if done manually.
b. In the application of analytical procedures, the account
Computer Assisted Audit Technique is the implementation of transaction or balance can be reviewed and printed on the
taking audit evidence material using a computer, an audit is report for unusual items in a more efficient way by using a
carried out using a computer or software to support the computer when compared to the manual method.
implementation of the examination. Audit techniques are c. The use of CAAT can make additional substantive testing
methods used by auditors to collect audit evidence. According procedures more efficient than if the auditor places trust in
to Arens in his book Auditing and Insurance Services, 9th the control and testing of the relevant controls.
Edition, there are seven audit techniques, namely testing
physical (physical examination), confirmation (confirmation), Some computer programs, called Computer Audit Software
documentation (documentation), analytical analytical (CAS) or Generalized Audit Software (GAS), have been
procedures), interviews with clients (inquiries of theclient), created specifically for auditors. Generalized Audit Software
counting reperfomance, and observation. TABK or CAAT is (GAS) consists of a series of computer program routines that
only a computer user in conducting an audit. In auditing can read computer files, select the desired information,
financial statements with TABK, audits are carried out on a perform repeated calculations, and print reports in the
computer-based accounting system, which is the real scope, specified Auditor format. Generalized Audit Software (GAS)
which is to provide an opinion or fairness and conformity with function: Pull or call data from file structure, media files,
the accounting system with financial accounting standards. company record layout that is being audited. Data is pulled,
CAATs' approaches include: generalized software audit, file edited and transferred to the audit file. Calculate with data. By
review audit control system (SCARF), snapshot, ITF, PTF and carrying out the addition, subtraction, multiplication and
so on. Computer-assisted audits can use software packages division operations. For example verification of the correctness
(software packages) and general audit software, as well as of footing in the diary and multiplication in the sales factor.
application software (user designed) or even by utilizing Carry out benchmarking with data. By using logical operators.
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For example comparing the customer's credit limit compared 3. Auditing with computer
to the customer's estimated balance, where each estimated Audits are carried out using computers and software to
balance that exceeds the credit limit is recorded for follow-up. automate the procedures of the auditors. This approach can
Summarize data. To provide a basis for comparison. For use several computer Assisted Audit Techniques as follows:
example a detailed payroll can be summarized to be Audit File Review Control System (SCARF), snapshot (fast
compared with the salary report. Analyze data to provide a shooting). audit with the computer has a broad understanding,
basis for assessing trends or judgments. For example, namely audit activities using computers as a tool. Computer
individual trade receivables can generally be sorted as a basis assistance can be used for typing/compiling reports, preparing
for assessing their billing possibilities. Reorder data with schedules, tables/matrices, charting, sample selection, and
sorting and merging operations. For example, the total quantity testing/testing with computers (collection and evaluation of
of sales of various products sold by companies can be sorted audit evidence; test of controls and substantive tests).
in order to facilitate analysis. Obtain statistical data from a row
of data. For example, last month's mean and median sales Audit with the computer can be done in adit around or through
can be calculated to help with analysis. Print output. Like the computer. Auditing around the computer and auditing
reports, analyzes and forms. For example, the confirmation through the computer can also be done without computer
form and envelope request. Procedures for each GAS assistance. In auditing around the computer, it is done by
application: The procedure for using the GAS package starts examining the computerized system as a black box ("black
from determining the purpose of planning audit objectives and box"). In auditing through the computer the auditor also checks
work programs for a particular application. Then the auditor the computerized system (programs and files). In the
includes details about the application on the specification form examination, the auditor can do it with the help of a computer,
that was printed beforehand. This specification is needed to but it is also biased with the help of a computer.
notify the computer system about the characteristics of the file
where the application data is stored, the various functions and 4 CONCLUSION
processing steps that must be carried out by the software and Computer Assisted Audit Techniques (CAATs) are the
the contents and format of the output. Then the auditor gets auditor's understanding of the examination of a computer-
the master file and the company's transaction file for the based accounting system by utilizing all the capabilities
application and checks the authenticity. This check generally possessed by a computer that will improve the efficiency and
consists of collecting the total key data field controllers and effectiveness of auditors in carrying out audits. ACL software
reconciling this total to match the total ledger estimates. At the is a specialized software audit designed to perform electronic
agreed time, the auditor submits these specifications to be data analysis and help prepare audit reports easily and
processed by the client computer system. These specifications interactively. The existence of electronic data as audit
can be processed through forms that can be scanned evidence is a necessity. This is a consequence of the
automatically or other magnetic media. Auditors can also use increasingly pervasive use of computers (information
GAS packages stored on magnetic tape, magnetic disks. The technology) in data processing organizations, both business
auditor observes closely the processing of all computer and government agencies. Whatever the type of audit and
operations. If the inspection is complete the auditor whoever the auditors seem to be, they will always deal (deal)
immediately takes over all the output and also the GAS with computer-based information systems and electronic data
package and specifications. ACL is one type of audit software evidence. So the role of CAAT in this context is clear to
that belongs to the Generalized Audit Software (GAS) facilitate the achievement of audit objectives. The interesting
category. ACL can only be used to collect and evaluate thing to observe from the analysis of various audit standards
evidence generated from corporate transaction processing so reviewed in this paper, is that SPAP (IAI, 2001) has provided
that ACL is more likely to be used to assess post transactions the most complete guide on the relationship between the
rather than current transactions. With ACL, auditors will save existence of computers in organizational data processing.
time, effort and costs in conducting audits in the field. The There are several benefits of auditing using software, including
volume of data to be analyzed becomes larger and the results the following: The GAS software is mostly an independent
of data processing are relatively more accurate. system and the file used is a type of read-only copy (can only
be read, but cannot be changed) so that it can prevent data
3 Computer-aided audit techniques approach! damage due to editing or deletion. GAS is software used to
implement DEA techniques. This GAS can be software that is
1. Auditing around the computer designed to assist audit functions (eg IDEA, ACL), database
Auditing around the computer, the auditor can step into the management (eg MS-Access), query languages (eg SQL) or
formulation of opinions by only reviewing the control structure worksheet software (spreadsheet software) (Darono, 2007).
and carrying out transaction testing and verification Hunton et. al (2004) explicitly distinguishes DEA from
procedures for estimating balances in the same way as in a distinguishing its position as a technique from GAS as an audit
non-PDE system. tool. Provide documentation of each test carried out in the
software that can be used as supplementary documentation in
2. Auditing through the computer the audit work paper. Cost and energy savings (efficiency) in
Auditors use computers to test the functions and controls that audits, especially audits of large companies with very large
are in the computer and records generated by the computer. audit samples, can be completed in a short time because most
The size of the role of the computer in the audit depends on of these software have unlimited ability to read source data.
the complexity of the company's computer system being Providing added value and improving audit quality, because
audited. GAS software generally has the ability to detect fraud by
conducting analytical testing, namely testing of financial
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information made by studying reasonable relationships concerning State Financial Examination Standards.
between financial and non-financial data to estimate whether
the balance of accounts that occur is reasonable or not, such [11] Watne, Donald A., and Peter BB Turney, Auditing EDP
as Benford's law's ratio, trend, and testing. Even though it has System, 2nd ed., Prentice Hall, 1990.
been described above that CAAT is a modern audit technique
with various advantages compared to manual auditing, it [12] Weber, Ron, EDP Auditing: Conceptual Foundation and
remains to be admitted that auditing with this technique still Practice, 2nd ed., Mc. Graw-Hill, Inc., 1988.
has limitations. These limitations include the absence of "silver
bullets" in developing expertise in mastering GAS software for
audit staff. These software generally have to be studied for a
long time, so that a KAP that wants its staff to be proficient in
mastering GAS software must "invest" a large enough amount
of funds to equip them with a series of trainings using this
software . In some cases, these trainings became useless
because they were not directly practiced in the audit. This is
because to be proficient, these software require the
development and maintenance of expertise continuously.

ACKNOWLEDGMENT
The authors wish to thank to Padjadjaran University, Bandung
Indonesia and Binus University, Jakarta, Indonesia.
.
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