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Which best describes Computer-Assisted Audit Techniques (CAATs)?
AStandardised checklists for review notes
BSoftware tools used by auditors to test transactions and controls
CConfirmation letters sent via email
DEngagement-letter templates
Answer & Solution
Correct answer: C. Confirmation letters sent via email
1. CAATs are software tools (ACL, IDEA, scripts) used in audit testing.
2. They enable analytical procedures over large datasets.
3. Letters, checklists and templates are workpapers, not CAATs.
_Source: ICAI BoS CA Final Paper 3, Ch 4 "Special Aspects of Auditing in an Automated Environment"_
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