Regardless of where the CAATs reside, the
auditor will need to continue to design the audit
procedures and tests. These will require a very
detailed understanding of the environment being
audited (e.g. businesses, process life cycles, design
of internal controls), as well as the application
systems in place to support the operations. There
are many challenges associated with developing
CAATs, whether or not they are developed
externally or reside within the structure of the
production system. These include: