 Copyright
Notice to Readers  What's New
Guide to Accounting Pronouncements and Sources, Sixth Edition
Significant Differences in GAAP in Canada, Chile, Mexico and the United States
Accounting and Reporting for Enterprises in the Development Stage
Accounting Bases Used in Canadian Government Budgeting
Accounting Changes Background Information and Basis for Conclusions Section 1506
Accounting for Infrastructure in the Public Sector
Accounting for Tangible Capital Assets Accrual Budgeting Issues
Accrual Budgeting by Canadian Federal, Provincial and Territorial Governments
Aligning Investment in Information Technology with Business Strategy: What CFOs Need to Consider (June 2005)
 Application of Computer-assisted Audit Techniques, Second Edition
Notice to Reader Foreword Advisory Group Chapter 1 Introduction Objective of This Study "Auditing" for the Purposes of This Study "CAATs" Applications for the Purposes of This Study Not Addressed in This Study Target Audience Chapter 2 The Importance and Benefits of CAATs in the Current Business Environment History of the Use of CAATs Business Environment Auditor Reluctance Importance and Benefits of CAATs Risk Reduction and Audit Effectiveness Audit Economy and Efficiency Exhibit 1 Auditing an Employee Savings Plan Exhibit 2 Health Care Payments Chapter 3 The Role of CAATs Using CAATs in a Risk-based Approach Obtaining Audit Evidence Using CAATs Audit Planning Types of Testing Made Possible by CAATs Data-oriented and System-oriented CAATs Data-oriented System-oriented Exhibit 3 Examples of Data-oriented and System-oriented CAATs Examples of Testing Performed Using CAATs CAATs Used for Substantive Procedures Testing for Posting and Control Total Accuracy Confirmation Letters Exhibit 4 CAAT Case Study Accounts Receivable Relationship Testing Testing for Reasonableness Testing for Inactivity Conversion Testing CAATs Used for Tests of Controls Application Controls Exhibit 5 Recorded Purchase Transactions Are Real (Occurrence) Report Testing Reconciliation Simulation Exhibit 6 Inventory Aging Other Types of Controls Testing Using CAATs to Increase Effectiveness of Fraud Detection Asset Misappropriation Fraud Financial Reporting Fraud Exhibit 7 Financial Statement Close Process Using CAATs to Audit Operating System Integrity Exhibit 8 Audit of Windows 2000 Server Setup and Configuration Continuous Auditing or Continuous Controls Monitoring Chapter 4 Establishing a CAAT Program Towards a Successful Introduction of CAATs Demonstration of Senior Management Commitment Formal Commitment Statement Implementation Plan Target Usage and Timeframe CAAT Software Hardware Use of Client's Computer Use of Auditor's Computer Training Use of Technical Specialist Implementing a CAAT Project Chapter 5 Managing a CAAT Project Exhibit 9 Process for Managing a Typical CAAT Project Plan the CAAT Audit Plan Objectives and Expectation Development Costs and Benefits Timing Competencies Data and Control Requirements Data Retention Access to Data Controls Over Data Determine Data Formats Develop the CAAT Acquire Data Execute the CAAT Document the CAAT Application Working Papers Planning Execution Audit Evidence Safeguarding of Data Review and Sign-off Using CAATs in Small Entity IT Environments Chapter 6 Tools and Techniques Introduction Exhibit 10 Categories of CAATs Generalized Audit Software General Programming Languages Exhibit 11 Performance Audit of a Government-funded Pharmacare Program Business Intelligence Tools Statistical Tools Sampling Regression Analysis Exhibit 12 Regression Analysis Credit Card Profiles Digital Filter Tools ERP Tools and ERP Control Analysis Tools Approva BizRights Security Tools Source Code Comparison Tools Spreadsheet Audit Tools Graphical Analysis Tools Exhibit 13 Graphic and Charting Tools Other Techniques Introduction Test Decks Integrated Test Facilities Embedded Audit Modules Parallel Simulation Chapter 7 Access to Client Data Introduction Identifying and Extracting Data of Audit Significance Exhibit 14 Accessing Data Produced by an Accounting Software Package Data Access Alternatives Using the Client's System(s) and Query Facility Using the Client's Query Facility Using the Client's System Transferring Data to the Auditor's Computer Direct Connection Local Area Networks (LANs) External Networks Exhibit 15 Using CAATs to Audit Financial Statements Downloading Using Removable Media Exhibit 16 Removable Media Storage Record Layouts Conclusion Appendix 1 Examples of Audit Procedures That Can Be Performed Using CAATs Introduction Operational Audits Storage of Hazardous Materials Expenditures in Government Programs Downsizing and Workforce Adjustment Audits Real Estate Macro Validation Fleet and Equipment Management Government Incentive Loan Programs Forensic Audits Identification of Potentially Fraudulent Payments Financial Statement Audits Specific Procedures Equity and Reserves Share Capital Reserves Assets Fixed Assets Receivables Investments Inventory Cash Liabilities Debentures Accounts Payable Commodity Taxes Revenues General Revenues Cash Receipts Expenditures General Expenses Payroll Cost of Sales Cash Payments General Ledger General Ledger Journals Validation of Results and Journal Entry Transactions Summaries Large or Unusual Journal Entry Transactions Related Party and Professional Fee Transactions Non-standard Journal Entries Date Analysis Other Potential Anomalies Other Questionable Acts Environmental Issues New Systems Appendix 2 Selecting CAAT Software Introduction General Issues Ease of Use Consistency of Presentation Logical Presentation of Choices Functionality Speed of Execution Online Editing of Instructions Error Handling Human Interface Issues Graphical Representation Available Fields Handling Technical Issues Browse Facility Documentation Engagement Management Criteria for Selecting CAATs Exhibit 17 Examples of General Criteria Exhibit 18 Examples of Specific Criteria Appendix 3 Controlling the Use of CAATs Introduction Planning Checklist Objectives Data Acquisition Data Security Data Retention Resources Execution Checklist Input Process Output Other Documentation and Review Appendix 4 Operations Performed by CAATs Introduction One-file Operations Two-file Operations One-file Operations Sorts (or Index) Include / Exclude Operations Arithmetic Summarize Stratify Statistical Sampling Two-file Operations Need for Common Key Joins Exhibit 19 Example of Join Match / Select Append Exhibit 20 Example of Match / Select Exhibit 21 Example of Append Exhibit 22 Example of Update Update Appendix 5 Illustration of the Benford's Law Technique Using Benford's Law Year-end Inventories First-digit Test Second-digit Test First-two Digits Test Last-two Digits Test Rounded Numbers Test First-three Digits Test Repeated Numbers Test Summation Test Additional Round Numbers Test Conclusion Appendix 6 Downloading Data Introduction Portable External Hard Drives CD/DVD Magnetic Tapes Cartridges Exhibit 23 Example of Data File Transfer Using a Direct Connection Transferring Data to a PC Using PC Support AS/400 Appendix 7 Understanding Data Introduction Terms Bits Bytes Hexadecimal and Half-bytes Representation Fields Record Types Fixed and Variable-length Records Files Detailed Discussion and Examples Hex Dumps Exhibit 24 Hexadecimal and Binary Half-byte Values Examples of Hex Value Determination Exhibit 25 Sample Client Report Exhibit 26 Sample Hex Dump ASCII and EBCDIC Exhibit 27 Seven-bit ASCII Character Chart Exhibit 28 Partial EBCDIC Character Chart Examples of ASCII / EBCDIC Representation Exhibit 29 Example Invalid Hex Dump Fields Zoned Decimal Exhibit 30 Partial Decimal, Hex and Binary Conversion Chart Exhibit 31 Sample Hex Display of Zoned Decimal Values Exhibit 32 Interpreting Sign Values in Zoned Decimal Fields Packed Decimal Fields Exhibit 33 Example Packed Decimal Field with Character Equivalent Binary Fields Exhibit 34 Maximum Binary Values for Fields up to Five Bytes Exhibit 35 Hexadecimal to Decimal Conversion Chart Exhibit 36 Hexadecimal Complements Floating Point Fields Record Layouts Exhibit 37 Sample Tabular Record Layout COBOL Record Layout Numeric Fields, General Zoned Decimal Numbers Packed Decimal Fields Binary Numbers Exhibit 38 Bytes Required to Store Binary Values Floating Point Numbers Edited Numeric Values Field Types, Field Length and Position Exhibit 39 Example COBOL Record Layout Exhibit 40 Tabular Record Layout Chart Segmented Records Fixed Segments Exhibit 41 Fixed-length Record Containing Fixed Segments Exhibit 42 Example of Pay File Records Exhibit 43 Hex Dump of Records Containing Fixed Segments Variable Segments Exhibit 44 Variable-length Record Containing Variable Segments Exhibit 45 Hex Dump of Records Containing Variable Segments Segments and File Formats: Further Complications Exhibit 46 Variable-length Record Containing Sibling Segments Exhibit 47 Partial Hex Dump of Variable Data from Tape Variable-length Delimited Records Exhibit 48 Variable-length Delimited Records Exhibit 49 Hex Dump of Variable-length Delimited Records Encoding Schemes in Detail Control Characters Collating Sequences Character Conversion Charts Exhibit 50 Binary, Hexadecimal and Decimal Conversions Exhibit 51 U.S. Seven-bit ASCII Character Chart Exhibit 52 PC ASCII Character Chart Part 1 Exhibit 53 PC ASCII Character Chart Part 2 Exhibit 54 EBCDIC Character Chart Part 1 Exhibit 55 EBCDIC Character Chart Part 2 Assessing Risks & Controls of Investment Funds
Asset Retirement Obligations - Background Information and Basis for Conclusions Section 3110
Assurance Engagement Working Papers
Audit & Control Implications of XBRL
Audit Enquiry - Seeking More Reliable Evidence From Audit Enquiry
Audit Implications of EDI
Audit Implications of Electronic Document Management
Audit of a Small Entity
Audits of Non-profit Organizations
Canadian Performance Reporting
Cash Distributions Amendments to Section 1540 Background Information and Basis for Conclusions (September 2007)
Cash Flow and Other Per Share Information - Background Information and Basis for Conclusions Sections 1540 and 3500
Cash Flow Statements - Background Information and Basis for Conclusions - Section 1540
Comprehensive Income and Equity - Background Information and Basis for Conclusions Sections 1530 and 3251
Confirmation of Accounts Payable
Confirmation of Accounts Receivable
Continuous Auditing
Corporate Reporting to Stakeholders
Costing Government Services for Improved Performance Measurement & Accountability
Data Level Assurance
Differential Reporting - Background Information and Basis for Conclusions - Section 1300
Differential Reporting Amendments to Section 3062 and AcG-15 Background Information and Basis for Conclusions
Disclosures by Entities Subject to Rate Regulation - Background Information and Basis for Conclusions AcG-19
Disposal of Long-Lived Assets and Discontinued Operations - Background Information and Basis for Conclusions - Section 3475
Electronic Audit Evidence
Electronic Filing and Reporting - Emerging Technologies and Their Implications
Electronic Filing of Information
Employee Future Benefits - Additional Disclosures - Background Information and Basis for Conclusions - Section 3461
Employee Future Benefits Implementation Guide, Second Edition (Updated November 2001)
Engagements to Audit Greenhouse Gas Emissions Information Practice Guide
Financial Instrument Disclosures and Capital Disclosures - Background Information and Basis for Conclusions Sections 1535, 3862 and 3863 (July 2007)
Financial Instruments - Recognition and Measurement - Background Information and Basis for Conclusions Section 3855
Financial Instruments Recognition and Measurement Background Information and Basis For Conclusions Amendments to Section 3855 (December 2009)
Financial Reporting by Canadian School Boards
Financial Reporting by Investment Funds, Second Edition
Financial Reporting by Rate-regulated Enterprises
Financial Reporting by Small Business Enterprises
Financial Reporting in North America - Highlights of a Joint Study
The First Audit Engagement
Full Cost Accounting from an Environmental Perspective
General Standards of Financial Statement Presentation - Background Information and Basis for Conclusions - Section 1400
Generally Accepted Accounting Principles - Background Information and Basis for Conclusions - Section 1100
Going Concern - Amendments to Section 1400 - Background Information and Basis for Conclusions (June 2007)
Guide for Developing Quality Control Systems in Public Accounting
Hedges - Background Information and Basis for Conclusions Section 3865
The Impact of Technology on Financial and Business Reporting
Impairment of Long-Lived Assets - Background Information and Basis for Conclusions - Section 3063
Improving Disclosures About Financial Instruments (Amendments to Financial Instruments Disclosures, Section 3862) (June 2009)
Income Taxes - Background Information and Basis for Conclusions - Section 3465
Indicators of Government Financial Condition
Intangible Assets Background Information and Basis for Conclusions Section 3064 (September 2008)
Interactive Data Building XBRL Into Accounting Information Systems
Interim Financial Statements - Background Information and Basis for Conclusions - CICA Handbook Accounting Section 1751
Inventories - Background Information and Basis for Conclusions Section 3031 (June 2007)
Investment Companies - Background Information and Basis for Conclusions - AcG-18
Investment Companies - Amendments to AcG-15 and AcG-18 - Background Information and Basis for Conclusions (June 2007)
Liabilities and Equity - Background Information and Basis for Conclusions - Section 3860
Links between the Budget and the Estimates Accrual budgeting Issues
Maintaining Quality Capital Markets Through Quality Information
Non-Monetary Transactions - Background Information and Basis for Conclusions Section 3831
Not-for-Profit Financial Reporting Guide
Not-for-Profit Organizations Background Information and Basis for Conclusions 4400 Series (November 2008)
Professional Judgment and the Auditor
Rate-Regulated Operations Amendments to Sections 1100 and 3465 and AcG-19 Background Information and Basis for Conclusions (December 2007)
Reporting on Environmental Performance
The Role of Information Technology in Achieving Sustained Regulatory Compliance
Secure IT Infrastructure for E-commerce
Security for Wireless Systems (revised)
Segment Disclosures - Background Information and Basis for Conclusions - CICA Handbook Section 1701
Stakeholder Relationships, Social Capital and Business Value Creation
Understanding Disclosure Controls and Procedures: Helping CEOs and CFOs Respond to the Need for Better Disclosure
Use of Specialists in Assurance Engagements
Using Graphics in Corporate Reporting
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