How internal audit can champion continuous monitoring in a business operation via visual reporting and overcome barriers to success

• Stacie Tronto ^[1] ; Brenda L. Killingsworth ^[1]
  1. [1] East Carolina University

     East Carolina University

     Township of Greenville, Estados Unidos

     
• Localización: The International Journal of Digital Accounting Research, ISSN 1577-8517, Vol. 21, Nº. 27, 2021, págs. 23-59
• Idioma: inglés
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• Resumen

  • Many auditing professionals would contend that continuous monitoring is a function of management and not internal audit. However, effective continuous auditing is highly dependent upon a strong continuous monitoring system. Further, by integrating technology of these two systems, continuous assurance can be achieved, and audit efficiency and effectiveness can be improved through the reduction of costs and effort. This paper discusses how internal audit can collaborate with a business operation to develop a continuous monitoring application utilizing visual reporting and overcome the potential barriers to success. The specific business operation selected for modification was the procurement card program at a large public university. Following an introduction of the scenario, an overview of the ProCard™ program is provided, highlighting the program risks and controls. Third, a four-phased approach used to develop the continuous monitoring tool is described, including specific steps taken to ensure effective use of the real-time data by auditors. Fourth, challenges the internal function encountered when implementing the system are described, including how those challenges were addressed. Fifth, the paper provides concluding comments and future initiatives planned. Finally, the paper provides additional examples for continuous auditing and monitoring and suggests future research topics in this area.