Prerequisites to be met before the internal auditor can consider using computer-assisted audit techniques (CAATs) are

a. The information to be analyzed must be stored in computer records. CAATs can be used only where the record-keeping is computerized.

b. Computer facilities must be available, and appropriate software to perform the CAATs must either be available or can be developed cost-effectively.

c. The auditor must have the technical competence to perform the audit procedures or can supervise the specialist who carries out the computer-assisted procedures. In addition, the auditor must consider the effectiveness and efficiency of using CAATs compared to using manual techniques.

d. All of the above