The American Institute of Certified Public Accountants (AICPA) has issued a practice aid, Use of Technology in an Audit of Financial Statements, to help auditors focus on the use of technology in the audit of financial statements. As part of the practice aid, the AICPA issued Part 1, The use of automated tools and techniques in the auditor’s risk assessment, to assist practitioners in considering the use of technology when applying AU-C section 315, Understanding the Entity and its Environment and Assessing the Risks of Material Misstatement.
Part 1 of the practice aid includes three modules:
- Module 1-A: The benefits of leveraging technology in the auditor’s risk assessment and of obtaining an understanding of the entity’s use of technology
- Module 1-B: Commonly used automated tools and techniques in the auditor’s risk assessment
- Module 1-C: Example of the auditor’s use of technology when performing risk assessment procedures
The practice aid may be updated or expanded in the future.