The main objective of this research is to provide an overview of the concept of continuous auditing and to provide an overview of how the implementation of continuous auditing can be facilitated. In order to provide these overviews, the following research question is formulated: ’How can the implementation of continuous auditing be facilitated, in order to improve the adaption of continuous
auditing in practice?’. To answer the research question, there is qualitative research conducted. Firstly,
is literature consulted, by means of comparing and combining different theories and concepts related to continuous auditing. Secondly, is practical information collected and analyzed by means of interviews related to continuous auditing. In order to formulate the conclusion regarding this research, the theoretical findings are compared and combined with the practical findings. In order to structure the conclusion, it is subdivided into subparts.
• Continuous auditing
Continuous auditing is considered as an audit approach performed by the internal audit to conduct effective integrated auditing and monitoring by utilizing technology to continuously gather data from the operational processes and management information systems. The timing of the audits is to report events continuous by providing 100% coverage. Continuous auditing is an audit approach to data processing. However, this is a catch-all term, therefore the data processing is subdivided into four phases, which are described and visualized in the continuous auditing framework. The four phases consist of; data acquisition, data extraction, transformation and loading, data analyzing, and continuous auditing reporting. The continuous auditing framework is an overview of the concept of continuous auditing.
From a theoretical perspective, there has been too much pushing in the past in the range of different interrelated concepts which are; continuous auditing, continuous monitoring, and continuous assurance, than that there has been looked at the need in practice. However, the boundaries of the interrelated concepts of continuous auditing are beginning to vague. Due to the fact, how the concept is called is becoming irrelevant, because it mediates the same objective(s). • Implementation of continuous auditing
The implementation process of continuous auditing is a large and complex process. To successfully implement continuous auditing, organizations should acquire human capital, internally and/or externally. Especially, a combination of knowledge regarding audit, IT, analytics, and business. Organizations should take the key elements regarding continuous auditing into account; technology, people, process, and data. The combination of these key elements ensures that the implementation of continuous auditing can ultimately be successful. There are additional pre- conditions discussed related to continuous auditing which organizations should take into account when implementing continuous auditing. Most of all, the organizational motivation and changeability are the foundation for a successful implementation process of continuous auditing. The implementation process of continuous auditing requires an integral approach, which
Which is a contradictory finding with the pre-condition that continuous auditing requires a low frequency of changes, so organizations have to find a balance in this field of tension. Hence, the process of implementation of continuous auditing is a continuous and comprehensive cycle of implementation and adaption.
• Improve adoption of continuous auditing
Despite, the importance of innovation in the internal audit and the potential benefits of a successful implementation, the adoption of continuous auditing is relative low. The adoption of continuous auditing is relatively low because the implementation is not facilitated by the current status of theoretical development of continuous auditing, there is a mismatch between theoretical development and practical implications. For example, organizations do not have an overview which pre-conditions facilitate a successful implementation of continuous auditing.
In the case, continuous auditing is implemented, integral or to a certain extent, it provides several benefits and a more valuable audit for the organization. These benefits differ per organization, but are categorized in; reduce of risks, reduce in costs, improvement of organizational resilience, and improvement of business value. Awareness of these benefits and the possible added value entails the organizational motivation to implement continuous auditing, and increase the degree of adoption of continuous auditing in practice. However, continuous auditing does not enable immediately a demonstrable reduction of costs related to the audit. Therefore, the organization should strike a balance to what extent implementing continuous auditing is feasible. So, a clear overview of the implementation process, awareness of the benefits, and pre-conditions could improve the practical adoption of continuous auditing.
To conclude, the theoretical development did not correspondent with the practical needs regarding the implementation of continuous auditing. Due to the fact, organizations no longer saw any merit in all the different concepts, and the boundaries between these concepts make it difficult for organizations to understand and utilize these concepts. So, continuous auditing has been driving all along by its theoretical possibilities and not the practical needs. To improve the adoption of continuous auditing in practice, there should be more collaboration between practical and scientific development related to continuous auditing. This research provides an overview of the continuous auditing concept and the implementation process. Additional research could extend these overviews because there is no ‘good practice’ of a continuous auditing design and implementation process. Combining and comparing additional information will enhance the generalization of these overviews. This can result in valuable information which can provide a guide for organizations to successfully implement continuous auditing, and subsequently improve the adoption of continuous auditing in practice.