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Computer applications, Software tools, Auditing, Information systems Abstract
In light of the increasing demand on auditors to make the audit more effective and efficient, this paper presents a brief summary of the most prominent computer assisted audit tools and techniques (CAATTs), which auditors can use to increase audit efficiency and effectiveness. Additionally, the results of a survey of governmental auditors which inquired about their perceptions of a specific type of CAATTs (generalized audit software proxied by the use of Audit Control Language or ACL) are presented. Results show that auditors seemed to perceive the potential benefits associated with ACL; however, they displayed a lower confidence in their technical abilities in using the application. Also, the auditors surveyed expressed a desire to increase their skills through increased ACL training. Taken together, these results give audit decision makers evidence that additional technical training is needed and desired by auditors.
Introduction
Significant effort has been made in recent years to improve the effectiveness of the audit in light of its ascending importance to the stability of financial markets. Notable among the major initiatives are the promulgation of new auditing standards, the Report of the Public Oversight Board's (POB) Panel on Audit Effectiveness, and the continuing development and proliferation of computer-assisted audit tools and techniques (CAATTs). As technology was at the heart of the unprecedented growth experienced in the financial markets in the 1990s, the POB Panel on Audit Effectiveness, a panel of the independent, private-sector body that monitors and reports on the SEC Practice Section of the AICPA (2002), gave considerable attention to the issue in its report. The Panel raised questions regarding auditors' thought process or depth of knowledge and understanding of the information system and related controls, including consideration of the entity's computer environment and processing. As a result, they went on to make the following recommendation to audit firms in order to improve this important area: "They should focus particularly on (1) obtaining a more thorough understanding of information systems relevant to financial reporting and the related risks and controls . (Public Oversight Board, 2000, p. 2.78).
In addition, audit standards attempted to respond to the new environment through the issuance of Statement on Auditing Standards (SAS) No. 94, The Effect...