Implementation of the continuous auditing system in the ERP‐based environment

Implementation of the continuous auditing system in the ERP‐based environment Purpose – The purpose of this paper is to introduce the continuous auditing system based on continuous monitoring and its implementation methodology; also to present a systematic case study of actual continuous auditing systems implemented in the financial industry and the manufacturing industry. Design/methodology/approach – The paper examines the method of implementing the continuous auditing system in the enterprise resource planning (ERP) environment, and suggests how the continuous auditing system can take firm root by looking at the successful introduction of the continuous auditing system in the financial industry and the manufacturing industry. Findings – The proposed method of implementing the continuous auditing system has the 2stage approaches which can be applied to various kinds of companies in the ERP‐based environment. In addition, the proposed cases have the important practical implications acquired in the process of implementing the continuous auditing system in the financial industry and the manufacturing industry. Practical implications – This study will help many corporations facing various types of corruption or circumvention of internal control, with their internal auditing, by showing them how to use the continuous auditing system to reinforce internal control. Also, it will make the independent auditor understand audited company's continuous monitoring system and lead to use the infrastructure for efficient and effective external auditing. Originality/value – The proposed method and cases of implementing the continuous auditing system offer an innovative approach to auditing in the ERP‐based environment because it facilitates both internal auditor and external auditor to achieve the audit objectives efficiently and effectively. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Auditing Journal Emerald Publishing

Implementation of the continuous auditing system in the ERP‐based environment

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Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
0268-6902
DOI
10.1108/MAJ-11-2012-0775
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to introduce the continuous auditing system based on continuous monitoring and its implementation methodology; also to present a systematic case study of actual continuous auditing systems implemented in the financial industry and the manufacturing industry. Design/methodology/approach – The paper examines the method of implementing the continuous auditing system in the enterprise resource planning (ERP) environment, and suggests how the continuous auditing system can take firm root by looking at the successful introduction of the continuous auditing system in the financial industry and the manufacturing industry. Findings – The proposed method of implementing the continuous auditing system has the 2stage approaches which can be applied to various kinds of companies in the ERP‐based environment. In addition, the proposed cases have the important practical implications acquired in the process of implementing the continuous auditing system in the financial industry and the manufacturing industry. Practical implications – This study will help many corporations facing various types of corruption or circumvention of internal control, with their internal auditing, by showing them how to use the continuous auditing system to reinforce internal control. Also, it will make the independent auditor understand audited company's continuous monitoring system and lead to use the infrastructure for efficient and effective external auditing. Originality/value – The proposed method and cases of implementing the continuous auditing system offer an innovative approach to auditing in the ERP‐based environment because it facilitates both internal auditor and external auditor to achieve the audit objectives efficiently and effectively.

Journal

Managerial Auditing JournalEmerald Publishing

Published: Jul 19, 2013

Keywords: Auditing; External auditing; Internal auditing; Continuous auditing system; Continuous monitoring scenarios; Internal control; Key‐risk indicator; Enterprise resource planning system

References

  • Supporting complex audit judgment tasks: an expert network approach
    Davis, J.T.; Massey, A.P.; Lovell, R.E.R.
  • The development of embedded audit modules to support continuous monitoring in the electronic commerce environment
    Debreceny, R.S.; Gray, G.L.; Tham, W.L.; Goh, K.Y.; Tang, P.L.
  • Predicting going concern opinion with data mining
    Martens, D.; Bruynseels, L.; Baesens, B.; Willekens, M.; Vanthienen, J.
  • Bankruptcy prediction using support vector machine with optimal choice of kernel function parameters
    Min, J.H.; Lee, Y.C.
  • Evaluating and rethinking the case study
    Stoecker, R.
  • A real‐valued genetic algorithm to optimize the parameters of support vector machine for predicting bankruptcy
    Wu, C.‐H.; Tzeng, G.‐H.; Goo, Y.‐J.; Fang, W.‐C.

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