CAAT stands for computer assisted audit techniques. CAAT thus involves using softwares, applications, to extract data and analyze data, cull out trends within data, identify exceptions, potential fraud within data, etc. Today, in the market, a variety of CAAT tools are available. Some popular one's include ACL Audit Command Language, IDEA Analysis, WizRule etc.

CAAT tools have a significant advantage over manual data testing techniques. With CAAT tools, an auditor can review, test and analyze the entire poplulation of data which is not possible with manual data testing techniques. Below, I have listed some of the uses of CAAT in brief:

- Recalculating and Verifying balances
- Testing complaince with standards
- Aging Analysis of receivables and payables
- Identifying control issues
- Testing Duplicates within data
- Testing gaps in invoice numbers

CAAT enhance the productivity of auditors. They enable auditors to make much more informed decisons to quantify the impact of financial statement errors. Data analyzed through CAAT also gives a high level of comfort to the senior management about the overall quality of data within the organziation.

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