Continuous Auditing of Database Applications: An Embedded Audit Module Approach

Groomer, S. Michael; Murthy, Uday S.

doi:10.1108/978-1-78743-413-420181005

Cited by 43 publications

(33 citation statements)

References 4 publications

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“…Development of Continuous Auditing over the last 20 years include use of Audit Modules (AM) to capture and evaluate information when predetermined integrity constraints were breached (Groomer and Murthy, 1989, Continuous process auditing system (CPAS) to deal with the issue surrounding an increasingly paperless audit environment by continuously monitoring and auditing AT and T's billing system (Vasarhelyi and Halper,1991),and the joint report on continuous auditing sponsored by the Canadian institute of chartered accountants and American Institute of Certified Public Accountants (CICA/AICPA,1999).…”

Section: Continuous Auditingmentioning

confidence: 99%

Implementation of Continuous Auditing for the Public Sector in Nigeria

Orumwense

2017

Journal of Accounting, Business and Finance Research

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Aims: The main purpose of the study was to access the challenges the government financial system in Nigeria has undergone in the recent times and with the aim of proposing a model that could be used to implement continuous auditing by the Public Sector Audit Organizations. Study design: Adoption of existing model and survey using questionnaires. Place and Duration of Study: Nigeria, 2014.Methodology: The existing continuous auditing models were studied and the integrated Continuous Auditing, Monitoring and Assurance Conceptual Model was adopted for use. The model was tested using data collected using questionnaires. Data was collected from 100 auditors in the Public Sector Audit Organizations. The Audit Command Language software (a Computer Aided Audit Tool) and a database system of a government ministry were used to demonstrate how data can be obtained directly from a client system. Results: The study found the need for training in the skills necessary for continuous auditing and the acquisition of Information and Communication Technology resources and infrastructure were necessary in realizing continuous auditing.

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Section: Continuous Auditingmentioning

confidence: 99%

Implementation of Continuous Auditing for the Public Sector in Nigeria

Orumwense

2017

Journal of Accounting, Business and Finance Research

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“…This application extracted data from a variety of customer reports, applied a wide variety of monitoring algorithms, and compared this with models (i.e., standards) to create alerts for anomalies within the system. This system was somewhat analogous to the one proposed by Groomer and Murthy (1989), who argued for embedded audit modules, but its data collection and processes were not embedded. This work eventually established the basis for CICA and AICPA's (1999) publication on Continuous Auditing: Research Report.…”

Section: Continuous Assurance Under New Gaasmentioning

confidence: 99%

Cybersecurity and Continuous Assurance

Vasarhelyi

2017

Journal of Emerging Technologies in Accounting

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The evolution of the double entry accounting model (Pacioli 1494;Sangster 2016) was based on the business practices of Venetian traders at the time, and focused on physical assets as well as debt including credit. The operations of many businesses were run on transaction records and accounting to secondary owners using those records. In the United States, the Great Depression motivated the Securities Exchange Act of 1934, which requires publicly traded companies to file their financial reports based on Generally Accepted Accounting Principles (GAAP) with the Securities and Exchange Commission (SEC). These reports are accompanied by an attestation of fair representation by independent auditors. Early market studies (e.g., Ball and Brown 1968) found a high relationship between stock market valuation and accounting values. Five decades later, Lev (1989) reported that adjusted R 2 s find that accounting variables explain substantially less of corporate market values. Lev (1989) argues that traditional financial variables need to be supplemented by nonfinancial variables such as the value of human resources, intellectual property, supply chain, and brand. A substantive body of literature has evolved arguing for expanded reporting that includes these measures, and even the incorporation of sustainability measures (e.g., integrated reporting-Eccles and Krzus [2010]; sustainability reporting-Schaltegger, Bennett, and Burritt [2006]). Furthermore, organizations now run their businesses with a plethora of data drawn from their Enterprise Resource Planning (ERP) systems. This creates an environment where traditional financial numbers are mainly used for corporate compliance and not management decision making. Consequently, the assurance of traditional numbers that are not being actively utilized in corporate management and progressively less used in investor decisions has limited value. A Different TechnologyAutomated trading accounts for at least 75 percent of corporate stock trades (Prakash 2016; Bute 2016) and is often affected by changes in stock price and volume over very short time intervals and not by any intrinsic economic performance data (Demos 2012;Wigglesworth 2016). Variables such as inventory (for just-in-time management), overnight cash balances The authors are thankful for the helpful comments and advice of Dorothy McQuilken, Chris Halterman, Andrea Rozario, and Jamie Freiman during the formulation of this editorial.Published Online: July 2017 1 ISA 701 (https://www.ifac.org/publications-resources/international-standard-auditing-isa-701-new-communicating-key-audit-matters-i ) requires the disclosure of key audit matters that open the opportunity of a less binary opinion. Key audit matters pertain to matters the auditor deems to be of the most significance (e.g., complex revenue transactions, tax-related matters, goodwill impairment) in the audit of financial statements of the current period. The auditor is required to communicate on the audit report the matters that require significant judgment, the types of...

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“…Since the pioneering work of Groomer and Murthy (1989), embedded audit modules have been accepted by academics as an essential technology for continuous auditing. While current versions of ERP systems neither include EAMs nor provide any real CA capability, they will undoubtedly play an essential part of the technical architecture of CA.…”

Section: Assuror's Independence and The Technical Architecture Ofmentioning

confidence: 99%

Feasibility and Economics of Continuous Assurance

Alles¹,

Kogan²,

Vasarhelyi³

2018

Continuous Auditing

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SUMMARYGiven the growing interest in the topic, both in practice and academia, it is timely and important to examine the concept of continuous assurance (CA) and the possible paths along which such services will evolve. There has been a tendency to see CA purely from the point of view of its technological enablers. As such, it has virtually been taken for granted that CA will follow as a matter of course. What has been less thought through is the business architecture that must underlie CA. In particular, we show that the key driver of CA is the demand for it. While there may be many economic transactions between the company and its stakeholders that could benefit from the provision of CA, there is no guarantee that CA is either cost effective-the only way of enhancing efficiency-or actually has to be continuous. Other factors that will affect the development of CA are the need for a new infrastructure to pay for it, as well as concerns about the independence of the assurors. We also identify some important research issues.

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Continuous Auditing of Database Applications: An Embedded Audit Module Approach

Cited by 43 publications

References 4 publications

Implementation of Continuous Auditing for the Public Sector in Nigeria

Implementation of Continuous Auditing for the Public Sector in Nigeria

Cybersecurity and Continuous Assurance

Feasibility and Economics of Continuous Assurance

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