The article is about Computer Assisted Audit Techniques (CAATs) which provide direct access to digital information and facilitate an effective and efficient audit practice. It focus on the implementation and functional capabilities in this highly digitized world.

In the digital decade, the need for IT governance and assurance services is gaining increasing prominence. Rapid deployment of IT is making it imperative that auditors have practical knowledge of using IT as a tool for drawing inferences and gathering relevant and reliable evidence as per requirements of the assignment. Computer Assisted Audit Techniques (CAATs) refer to audit techniques, which provide direct access to digital information and facilitate in conducting an effective and efficient audit. The need for understanding and auditing IT is not only relevant for specialist auditors but is imperative for any audit. Understanding of CAAT will help auditors not only perform their existing audits more efficiently and effectively but also facilitate the auditor in knowing how to create and execute new types of IT-related audit assignments.

CAATs are significant tools for auditors to gather information independently. CAATs can be used in various types of audits. CAATs provide a means to gain access and to analyze data for a predetermined audit objective and to report the audit findings with emphasis on the reliability of the records produced and maintained in the system. The reliability of the source of the information used provides reassurance on the findings generated. Auditors should have a thorough understanding of CAATs and know where and when to apply them. Auditors, to be effective in auditing IT environments, need to gain practical experience in using CAATs for various audit and assurance assignments.