Continuous Auditing & Continuous Monitoring: Continuous value?

Abstract

Advancements in information technology, new laws and regulations and rapidly changing business conditions have led to a need for more timely and ongoing assurance with effectively working controls. Continuous Auditing (CA) and Continuous Monitoring (CM) technologies have made this possible by obtaining real-time audit evidence and enabling organizations to review whether controls and systems function as intended on an ongoing basis. Although organizations understand the benefits of CA/CM, the current state of adoption is relatively low not the least because organizations find it difficult to quantify the value. This research used a design research approach to develop a framework that addresses the added value of redesigned internal controls within IT-supported business processes of organizations. The value of the CA/CM is broken down into three distinguished domains, Efficiency, Assurance and Quality. The Waterfall method is proposed as visualization method in order to indicate a possible cost saving and value increase of a redesigned control clearly. The framework has been tested and evaluated within a case organization. It can be concluded that the framework is applicable for providing more insights in the value of CA/CM.