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INTEGRATED AUDITING AND CONTINUOUS AUDITING - Coggle Diagram
INTEGRATED AUDITING AND CONTINUOUS AUDITING
integrated auditing
what?
process where appropriate audit disciplines are combined to assess key internal controls over an operation, process or entity
approach focuses
Risk analysis assessments
identify risks arising from the entity and its environment as they pertain to internal controls
key element
to discussing the risks among the entire audit team
process
• Identification of risks faced by the area being audited
• Identification of relevant key controls
• Reviewing understanding of those key controls
• Testing the key controls
• Testing that managerent controls are working efficiently
• A combined report or opinion on control risks, design, and weaknesses
continuous auditing
Prerequisites
• When there is a high degree of automation
• When there is an automated and highly reliable process and producing information soon after or during the occurrence
• When alarm triggers report control failures
IS techniques
• Transaction logging
• Query tools
• Statistics and data analysis
•Database management systems
• Data warehouses
• Neural network technology
• Accessible business reporting language
methodology that enables independent auditors to provide written assurance on a subject matter
example?
if the average travel reimbursement for employees is $1,500, and 95% of the reimbursements are under $5,000, a continuous auditing program might look for travel reimbursements for more than $5,000.
purpose
helps continually assess the effectiveness of controls. Continuous audits are most often used when new procedures are implemented as a way to track effectiveness.
advantages
Provides ongoing assurance about the accuracy and reliability of financial reporting and internal controls.
Can detect potential issues or anomalies in real-time, allowing for immediate corrective action
Can improve internal controls and identify potential weaknesses in the system.
Enhances accuracy and timeliness of financial reporting.