The use of computer modelling and simulation in the audit process

Discusses computer modelling and simulation as a decision‐making technique frequently used by all genres of manager in a wide range of disciplines and in all types of organizations. Suggests that for auditors to do an effective job – a competent, quality audit in a timely and efficient way – they must familiarize themselves with the technique, know how it is used in the decision process and be aware of its shortcomings. Explores the many ways computer modelling and simulation are used in the decision process and discusses how the technique was actually used to facilitate several audits. Describes the use of computer modelling and simulation during an audit to validate an auditee‐developed model, simulate the outcome of an auditee′s plans, test an auditee′s in‐place system and, finally, help enhance the credibility of auditor recommendations.