Powerful audit software at a fraction of normal prices.

• Author: Lanza, Richard B.
• Position: Computer Aided Audit Techniques - InformationActive Inc.

Current auditing standards necessitate that auditors use software programs. Up until recently, the audit software programs have been too expensive and difficult to implement for many small CPA firms and sole practitioners. The following article describes a much less expensive tool that these firms may find will effectively meet their needs, but at a much lower price. The author provides examples for testing the software during a trial period.

During the last 20 years, the ability to use computers to analyze and manipulate large amounts of information has become critical to a number of audit and accounting functions. Current audit standards, that is, Statement on Auditing Standards (SAS) No. 80, Amendment to Statement on Auditing Standards No. 31, Evidential Matter (AICPA, Professional Standards, vol. 1, AU sec. 326); No. 94, The Effect of Information Technology on the Auditor's Consideration of Internal Control in a Financial Statement Audit (AICPA, Professional Standards, vol. 1, AU sec. 319), and No. 99, Consideration of Fraud in a Financial Statement Audit (AICPA, Professional Standards, vol. 1, AU sec. 316), acknowledge that, "It may be difficult or impossible for the auditor to access certain information for inspection, inquiry, or confirmation without using information technology." This fact led to the development of several powerful software products known generically as Computer Aided Audit Techniques (CAAT) software. These software programs provide accountants and auditors with powerful tools to analyze large sets of data. Most of these off-the-shelf packages, however, can be expensive to implement effectively, the costs ranging into the thousands.

ActiveData for Excel[TM]

A new product, ActiveData for Excel, from InformationActive Inc., brings CAAT functionality into the Excel environment (at an introductory price of $149 per license). The ActiveData for Excel add-in provides sophisticated data analysis and manipulation tools that enable users to stratify, summarize, age, identify gaps, and run Benford's Law, to name just a few of its features. Users can also join or relate files (for example, vendor address to employee address information), which was generally possible only in more advanced products such as Microsoft Access. Please note that, for ease of use, all of the ActiveData for Excel functions are available via a menu bar that already exists in Excel.

ActiveData for Excel then goes beyond CAAT tools in that it enables...