Computer Assisted Audit Techniques

The Role of Automated Testing

As the quantity of data in electronic form continues to grow, Data Analysis is becoming increasingly more critical to identify risk and conduct audits.  Using computer based tools and techniques give auditors the ability to maximize their efficiency (reduce hours) and effectiveness (increase scope) in the audit function.  

  • Audit software allows auditors to interrogate raw data from an application in order to carry out tests and analysis.
  • Ability to exhaustively test data in various ways.
  • Greater use of analytical techniques.
  • Test data integrity.
  • Compare multiple data sources for accuracy and completeness.
  • Identify trends, anomalies, exceptions.
  • Detect control weaknesses, and in some cases, fraud.

Any information that is in an electronic form and is audit-able can be a candidate for applying Data Analysis.

Services We Provide

eDelta provides a full-array of services around data analysis and Computer-Assisted Audit Techniques (CAATS) to the Money Transfer / Remittance Services Industry.   Experience with various automated software tools (Audit Command Language, Statistical Application Software, Database and Office Productivity Software, and Data Mining and Extraction), we are able to recover, discover, analyze, audit and report on mission-critical data.

Solution Highlight: Money Transfer / Remittance Services

Automated testing and/or CAATS could be performed for the following:

  • Validate the accuracy of key money transfer system revenue reports through automated re-calculations and footings.

* Transaction Fees

* FX Exchange Gains and Loss 

  • Benchmark key reconciliations between Federal Reserve Bank, ACH, Wire Transfer / Remittance System, and the General Ledger and related exception processes.
  • Analyze key Wire Transfer / Remittance system audit trails for compliance with operational policies and procedures and appropriate segregation of duties and authorization.
  • Summary of numeric data by key attributes (e.g., transaction type, payee, etc.).
  • Verify the completeness of outgoing wires and related instructions (Bank Secrecy Act—Travel Rule).
  • Analyze suspense account activity and validate timely resolutions and related General Ledger postings.
  • Analysis of incoming and outgoing wire transfer / remittance transactions from a dollar (statistical — mean, standard deviation, high, low, etc.) and non-statistical (transaction type, originator, beneficiary, etc.) to identify suspicious and/or significant transactions.

* Compliance (Anti-Money Laundering)

* Validation of Financial Statement Assertions: Completeness, Existence, Valuation

  • Analysis of transactions across time (e.g., month, quarter, year) detailing buckets and percent increases/decreases.
  • Select sample of manual, recurring and adjusting journal entries for testing to supporting documentation.