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Continuous audit: Likelihood of success and roadblocks

The CICA/AICPA's study defines a continuous audit as a

"...process or methodology that enables independent auditors to provide written assurance on a subject matter using a series of auditors' reports issued simultaneously with, or a short period of time after, the occurrence of events underlying the subject matter".

One of the success factors that the continuous audit would be based upon would be "reliable and well-controlled application systems".

What do you think is the likelihood of the continuous audit's success in the future? Do you see any potential roadblocks to that success?

Solution Preview

The concept of a continuous audit will undoubtedly become more and more useful in the future, and very possibly necessary because of the current forms of business. Continuous auditing is facilitated by electronic record-keeping which allows remote access as a method of monitoring business activities. The good news is that reporting would be almost instantaneous which would be very useful for stakeholders of all kinds.

The second good result is that internal audit systems will become more and more effective for the production of accurate reporting as well as a deterrent to fraud. Better internal control systems could help minimize external audit fees which improving ...

Solution Summary

The 403 word referenced solution provides seven types of issues to be resolved in the concept of continuous audit.