Question

generalised audit software is used by auditors in substantive testing. discuss 6 audit tests that can be performed using this software.

Answer 1

1. Generalized Audit Software  It is an off-the-shelf package that can provide a means to gain access to and interrogate data maintained on computer storage media. It is one of the tools IT Auditors utilize to obtain evidence directly on the quality of the records produced and maintained by application systems.
2. Generalized Audit Software GAS consists of a series of computer program routines that can read computer files, select desired information, perform repetitive calculations, and print reports in an Auditor-specified format. Generalized Audit Software enables Auditors to have direct access to computerized records and to deal effectively with large quantities of data.
3.  Example of Generalized Audit Software ACL IDEA
4.  ACL (Audit Command Language) • a data analysis software program that helps auditors remain current with changing technology. Its primary usefulness lies in its ability to perform analysis and audit tests on 100% of the data available rather than merely sampling the data. The ability to audit 100% of the available data assists auditors with identifying potential fraud patterns and data irregularities.
5.  IDEA (Interactive Data Extraction & Analysis) • Interactive Data Extraction and Analysis (IDEA) is a leading eAudit data-analytics software package. IDEA provides audit, finance and compliance professionals in industry and practice with an efficient and effective solution for high performance audits. • IDEA is also used by tax authorities throughout the world (including the Revenue Commissioners) to interrogate taxpayer transaction and system data.
6.  IDEA (Interactive Data Extraction & Analysis) • Main functionalities: – Comprehensive analysis of transactional data – Analyse 100% of your data – Identify relationships, patterns and anomalies
7. Functions Explanation 1. File or database access Reads and extracts data from a client’s computer file or databases for further audit testing. 2. Arithmetic functions Perform a variety of arithmetic calculations on transactions, files and databases. 3. Statistical analysis Provide functions supporting various types of audit sampling. 4. Report generation Prepare various types of documents and reports.  FUNCTION OF GAS
8. Functions Explanation 5. Examine records For completeness, consistency and correctness by scanning all records using specified criteria and to print out the exceptions. 6. Compare data on separate files Where records on separate files should contain compatible information, a program can be used to determine if the information on various files agrees or to make other comparisons.  FUNCTION OF GAS
9. Generalized Audit Software can accomplish the following audit tasks: 1. Footing and balancing entire files or selected data items. 2. Selecting and reporting detailed data contained on files. 3. Selecting stratified statistical samples from data files. 4. Formatting results of tests into reports. 5. Printing confirmations in either standardized or special wording. 6. Screening data and selectively including or excluding items. 7. Comparing two files and identifying any differences. 8. Recalculating data fields.