audit software

Quick Reference

Computer programs used by an auditor to examine an enterprise’s computer files. Utility programs may be used, for example, for sorting and printing data files. Package or tailor-made programs may be used to interrogate the computer-based accounting system of a client. The auditor may also use more sophisticated audit software for compliance tests and substantive tests. Computer-assisted audit techniques (CAATs) include the use of embedded audit facilities, enabling program codes and additional data to be incorporated into the client’s computerized accounting system to facilitate a continuous review of the system. There are two main examples of embedded audit facilities: integrated test facilities (ITF), which involve the creation of a fictitious entity to which transactions are posted for checking purposes; and systems control and review files (SCARF), which collect certain predefined transactions for further examination.

Subjects: Accounting.

Reference entries