Substantive audit procedures using CAATSUse CAATs to Initial procedure

-Obtain an electronic version of listing and import into audit software-Scan the listing for unusual amounts-Stratify account by categories/transaction type/value e.g. into local/imported items-Using CAATS cast the schedule of the account for mathematical accuracy

Existence/occurrence

-Generate a report of unauthorized access to the Masterfile-Consider the occurrence of the item considering exceeding the budget by approximately %-Scan the entire Masterfile and extract reports of

-Duplicated items as there should be none – Existence\occurrence-Limit exceeded – Existence-Unreasonable items – Existence -Dates of transactions – Existence

-Select a random sample of transactions from Masterfile to inspect validity of entry by requesting management to provide with the supporting documentation-Perform a statistical analysis to identify slow unusual/abnormal fluctuations-Selecting a sample of inventory at year end as part of the physical verification

Completeness:

-Generate a report of unauthorized access to the system-Consider the completeness of the item considering missing the budget by approximately %-Scan the entire Masterfile and extract reports of

-Blank fields – Completeness-Any breaks in sequence – Completeness

-Run a comparison of approved listing/items and filter out items that appear on the approved listing/accounts and not of the list/accounts to identify possible transactions that have taken place but have not been recorded-Select a sample of invoices and trace them to Masterfile transactions to inspect that they are recorded – Completeness

Obtain a total amount of individual entries in a day book in a particular period and then agree this total amount to the amount posted in ledger control

Cast all accounts receivable and inventory amounts from the interface reconciliations and agree this to the balance in the financial statements

Valuation

-Generate a report of unauthorized access to the system-With the underlying contracts/invoices, agree the following details to the database:

-Activation date of policy -Premium payable -The contract is signed by the policyholder

-Scan the entire Masterfile and extracts reports of:-Debit\credit balances – Valuation-Unreasonable items – Valuation

-Extract report of balances for manual comparison Analysis of the ageing of items ledger to determine whether there should be a write down Select a random sample of transactions from Masterfile to inspect the accuracy of transaction

recording with respect to supporting documentation – Valuation

Analyze the Masterfile by extractingo Priceso Inventory quantitieso Costso Dateso Balanceso Independent information. E.g. exchange ratesAnd inspect that they are the same as those used by management

Re-perform the calculation – Valuation Inventory specific: Scan the entire Masterfile and extracts reports ofo Negative quantitates – Valuationo Analysis of the ageing of items in the inventory ledger

o Selecting a sample of sales invoices for checking to dispatch documentationo Selecting a sample of inventory at year end as part of the physical verification

Cut-off-Extract a listing of any entries with a date of after year end as there should be none included in the transaction file