How audit software helps to achieve quality in auditing

Abstract

Purpose: The purpose of this study is to probe audit software and examines whether it helps the auditor achieve quality in auditing. It aims at ascertaining the costs and efforts auditors need to achieve the fundamental quality issues and how CAATs can assist in this respect. Furthermore, the feasibility of the software under all circumstances are discussed and whether such tools may present a risk to audit quality in the short and long run. Design: The objective of this study was achieved through 10 semi-structured interviews with audit partners and 79 questionnaires. This represented 51% of the population of audit partners and 10% of the audit staff. Findings: This study ascertains that the costs and efforts needed to achieve the quality issues are high. Bespoke programs are ideal for high risk industries, though it may not be feasible for small companies to develop their own software hence they may utilise GAS or utility software. The quality reviewers agree that GAS and bespoke programs help the auditor achieve better quality in auditing than utility programs, though the auditors consider all the three tools to be on the same level. None of the CAATs pose a threat to the quality in the short and long run though bespoke programs might make the audit too much of a routine and it reduces and element of personal judgement. Value: I trust that this study will serve the practitioners as a guide to the audit software available to achieve the fundamental principles of quality assurance and thereby providing a better quality service.