The Continuous Audit

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transactions is also referred to as a “base system”

What is Continuous Auditing?

In 1999, the joint study of the American Institute of Certified Public Accountants (AICPA) and the Canadian Institute of Chartered Accountants (CICA) defined continuous auditing as ‘a methodology that enables the auditor to provide assurance on a subject matter simultaneously with, or very shortly after, the occurrence of events underlying the subject matter. The definition emphasizes two aspects of continuous auditing: its function as a methodology, and its use in an independent audit. As a methodology, continuous auditing has attracted a great deal of attention from researchers over the past three decades and, as a consequence, a variety of models have been developed to audit transactions continuously.

The continuous auditing model not only addresses challenges of continuous auditing in the context of the independent audit of financial statements but also provides auditors with the ...

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units on a continuous basis to detect potential problems.

The continuous auditing model not only addresses challenges of continuous auditing in the context of the independent audit of financial statements but also provides auditors with the opportunity to audit clients on a more frequent basis.

Background and Literature Review of Continuous Auditing:

The conventional annual audit, not a continuous audit, will continue to dominate the audit market of certified accounting professionals (Certified Public Accountant (CPA) in the United States and Chartered Accountant (CA) in the United Kingdom, Canada, and Australia, etc.) for the foreseeable future. The demand by investors and ...

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