Computer Aided Audit Techniques and Fraud Detection

Abstract

This study sought to identify the various types of fraud encountered during financial transactions, evaluate the adoption of Computer Aided Audit Tools (CAATs) in fraud detection in an organization, appraise the impact of CAATs on performance of an organization, and ascertain the problems of CAATs’ application within an organization. Data for the study was collected using a well-structured questionnaire which was distributed to staff members of a large audit firm in Nigeria. Data obtained was statistically analyzed using statistical package for social sciences (SPSS). The hypothesis of the study was analyzed using regression analysis. The result of this study showed that 72.8% of the respondents agreed that CAATs have played a major role in fraud detection, and hence can be used to curb fraud to a minimal level in organizations. 58.1% of the respondents ascertained that CAAT helped to improve the auditors’ performance. Furthermore, the cost of implementing CAAT, the required skills to be acquired for its usage and systems database requirements, are some of the problems found to be associated with the introduction and application of CAAT to organizations. Thus, it can be reasonably concluded that CAAT can help in the transparency of financial reports within organizations because it is a platform where fraudulent and misappropriated practices are easily detected.

Keywords: Fraud, CAAT, Audit software, Accounting Information