What is continuous auditing?
To understand the benefits of continuous auditing, it is important to know the differences between continuous auditing and continuous monitoring. Continuous auditing is the use of audit methods, ranging from ongoing control evaluations to continuous risk assessments on a more frequent or ongoing basis. Technology plays a key role in the continuous audit process by automating the pattern analysis of key numeric fields and the examination of trends. Technology also enables the comparison of detailed transaction analysis against specific thresholds, the identification of exceptions and anomalies, the testing of controls, and the comparison of processes or systems over time. On the other hand, continuous monitoring is a process that management puts in place to ensure that its policies, procedures, and business processes are operating effectively. It typically addresses management’s responsibility to assess the adequacy and effectiveness of internal controls. For instance, management may id
