Final answer:
The option 'Produce terms and conditions of employment' is not a use of CAATs in auditing, as CAATs are used for verifying financial details, analytical reviews, and fraud examination, not for HR functions.
Step-by-step explanation:
Among the options provided, the one that is not a use of Computer-Assisted Audit Tools and Techniques (CAATs) in auditing is 'Produce terms and conditions of employment'. CAATs are utilized by auditors to perform various types of audit tests.
The options that are legitimate uses of CAATs include 'Test of details of transactions and balances', which involves verifying the amounts and other data related to financial transactions and balances; 'Analytical review procedures', which use CAATs to evaluate financial information through analysis and comparison, often to identify unusual patterns or discrepancies indicative of potential issues; and 'Fraud examination', where CAATs are employed to detect and investigate fraud within a company.
However, creating or producing terms and conditions of employment is generally a human resources function, not an auditing activity, and is not typically performed using CAATs.