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Continuous Audit

Continuous Audit

What Is a Continuous Audit?

A continuous audit is an internal interaction that inspects accounting practices, risk controls, compliance, data technology systems, and business procedures on a continuous basis. Continuous audits are typically technology-driven and intended to computerize mistake checking and data verification in real-time.

A continuous audit driven system produces caution sets off that give notice about oddities and errors distinguished by the system.

Figuring out Continuous Audits

A internal auditing department typically has a set schedule to take care of its responsibilities, whether month to month, quarterly, semi-yearly or every year. An individual or team invests energy in every area to gather data, survey and examine data, and distribute their reports for management and the audit committee of the Board of Directors. A continuous audit is executed by means of technology, and these mini logs help the internal) in the middle of between their consistently scheduled conventional audits.

Continuous auditing isn't to be mistaken for computer-supported auditing. In computer-helped auditing, the auditor is essentially being assisted by technology, for example, bookkeeping sheets to complete a periodic audit. Computer-supported auditing is driven exclusively by the auditor, while continuous auditing is intended to run consequently at standard tight stretches.

Special Considerations

Numerous internal audits are done months after a business activity has happened, yet these types of audits for certain processes are too long to be of real value. Continuous auditing is finished to take into consideration risk assessments and control checks all the more habitually; they're most frequently utilized when another standard or methodology is being carried out. The continuous idea of the audit takes into account more effective assessments.

Benefits and Disadvantages of Continuous Audits

A continuous audit is beneficial in hailing unusual or resistant activity in various areas of a firm, and guaranteeing that laid out procedures are being followed. For instance, in the accounts payable department, the continuous audit system could stop an unauthorized amount from being shipped off a vendor. In the accounting or legal department, it can confirm that a required filing to the Securities and Exchange Commission (SEC) is set to be sent before a cutoff time.

The continuous audit function can monitor whether the firm's computer networks have been prepared for potential cyberattacks. These and more tasks of the continuous audit advance proficiency in an organization and minimize or dispose of completely infringement of procedures or processes that could open it to monetary or legal liability. Outstandingly, the disadvantages to a continuous audit are initial set-up costs and, maybe, an over-dependence on the system in certain areas of a firm's operations where human intervention would be essential.


  • Continuous audits are most frequently utilized when new procedures are executed as a method for following effectiveness.
  • Continuous auditing requires the continuous assessment of accounting practices and risk controls.
  • This auditing practice helps persistently evaluate the effectiveness of controls.