Auditing Software Key Terms

Learn the basic terms used when dealing with auditing software
By Jennifer Ehlenfeldt, Freelance Writer Auditing software is a simple alternative for the small and large businesses looking to save money and keep their accounts in line without the help of a professional auditor. Auditing software can be used to simply keep your money in order, but it is also available to help companies dealing with potential fraud or mistakes that need correcting. Find out what types of software are available and learn the terms associated with them before you buy auditing software.

Generally accepted auditing standards (GAAS)

Generally accepted auditing standards (GAAS) are 10 guidelines put in place by the American Institute of Certified Public Accountants (AICPA) to make sure auditing is uniformly completed, including any operations through auditing software.
Try:  Visit Smart Pros to read about the GAAS.

Test data

Test data is defined as information used to make sure auditing software controls work properly.
Try:  Test data is defined in the glossary at Accounting Institute Seminars.

Parallel simulation

Parallel simulation is used as a control measure to make sure auditing software is working as well as a manual system. Data from a client's previous auditing is compared with the same data processed using auditing software to make sure the software is accurate and effective.
Try:  The Activity-Based Risk Evaluation Model of Auditing (ABREMA) defines parallel simulation and how it is used to test auditing software.

Utility software

Utility software is used to test auditing software to make sure it's working properly with your current computer operating system. The software evaluates data files and analyzes auditing procedures.
Try:  Review a definition of utility software at Audit Net. 

General liability

General liability is a straightforward accounting term meaning business coverage that handles any liability expenses a company has. When it comes to auditing software, a program that can handle general liability calculations can keep your business running smoothly.
Try:  Visit Safeco Insurance Company for a definition of general liability. 

Computer-assisted audit technique (CAAT)

Computer-assisted audit technique (CAAT) is the general term used for any type of software used to review and keep track of accounting procedures. Auditing software can include both operational programs and utility programs to keep them in check.
Try:  Peruse the types of CAAT and how they can be used with your current accounting system at ISACA.