Continuous Auditing

Paper Summary:

This paper explains that the traditional financial reports and the traditional audit style sometimes prove not enough because they lack the essential thing in today?s business environment, updated information; therefore, continuous auditing seems to be getting more and more followers. The author points out that some of the drivers of continuous auditing are a better monitoring of financial issues within a company, ensuring that real-time transactions also benefit from real-time monitoring, prevention of financial fiascoes and audit scandals such as Enron or Andersen, and use of software to determine that financial controls are properly done. This paper stresses that continuous auditing involves a large amount of work because the company practicing continuous auditing will not provide one report at the end of a quarter, but will provide financial reports on a day-to-day basis.

From the Paper:

"The Sarbanes- Oxley Act was passed on the 30th of July 2002 with the declared goal of "deterring and punishing corporate and accounting fraud and corruption". As we have seen in the lines here above, continuous accounting aims exactly at providing a more secure platform in order to avoid fraud and a real-time process that is aimed at ensuring high-level financial control. In order to explain the benefits from continuous auditing with regards to Sarbanes-Oxley Act, we can use one of the examples given on one of the articles from www.cfo.com, which uses Crown Media for the case study."

More papers on Continuous Auditing:

• Analytical Essay # 146411 : "Sarbanes-Oxley and the Auditing Profession"
• Essay # 15907 : "Environmental Auditing"
• Case Study # 147050 : "Strategic Audit of Home Depot"

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