Continuous Audit Implementation at Cia. Hering in Brazil

This paper details the implementation of continuous audit at Cia. Hering, a large Brazilian clothing retailer, including challenges and opportunities that occurred during the process. Internal auditors used emerging technologies to improve the firm's audit procedures and implement continuous auditing in the firm's tax compliance system for its manufacturing division. By comparing internal invoice information to an exogenous tax dataset extracted directly from the State's Tax and Finance Office, internal auditors were able to review all electronic invoices for manufacturing in a timely way, improving information quality and internal controls. Continuous audit provided continuous control monitoring (CCM) and continuous data assurance (CDA) and reduced tax compliance risk in its manufacturing division.