Abstract
Research Question: Organizations increasingly buy standardized continuous auditing solutions from vendors rather than develop their own. What opportunities lie in exploring the adoption, implementation and application of such solutions in the context of internal auditing? Motivation: Extant literature has not fully examined the implications of this development and there are several interesting unexplored research questions in this area. Idea: We develop a framework for examining continuous auditing as an information system solution and link this to internal auditing. Data: We employ existing literature as data and build on similar frameworks from ERP systems and AIS research. Findings: The findings of the paper are a series of research questions for examining this relationship as well as a proposal for using different theoretical perspectives and methodologies. Contribution: The contribution is a new perspective on continuous auditing research that could move this research area forward and link it to current developments in the field.
Highlights
Advances in technology together with an increase in global commerce have stimulated the demand for a means to verify the integrity of financial transactions as well as other decision relevant data
In the last few years a view of continuous auditing has emerged as a multidimensional construct, in that CA “consists of many diverse elements and may be implemented at various levels of sophistication
We propose that the relationship between continuous auditing solutions (CAS) and internal audit (IA) should be framed as shown in figure 1 below
Summary
Advances in technology together with an increase in global commerce have stimulated the demand for a means to verify the integrity of financial transactions as well as other decision relevant data. If a solution is installed, maintained, and utilized as intended, it has the capability to assist in mitigating or even preventing problems in identified risk areas” (Byrnes et al, 2015: 55) This perspective sees continuous auditing as an information technology-based solution, adopted and implemented in organizations to achieve certain business objectives. By studying the literature on continuous auditing and internal auditing as well as some of the continuous auditing solutions in the market, this research note concludes by proposing a framework for studying continuous auditing solutions in connection to internal auditing as a management function It includes the general component of any continuous auditing solution as well as the tasks, organization and behavioral impact of internal auditing.
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