A continuous audit involves the continuous monitoring of systems and the collection of data and evidence normally required in an assurance audit, spreading all the time and workload over the year. With more regular check-ins by an auditor to provide evidence that internal controls are in place and functioning properly, a continuous audit allows an organization to forgo a traditional audit for a few years.
Continuous audit spreads the audit burden throughout the year. In addition, more frequent monitoring of critical controls that is required is a benefit that helps prevent any control breaches during the year that are not detected until the annual audit. Other benefits:
· Collecting audit evidence with less rush and effort;
· Better analysis of your controls through more frequent measurements and trends;
· Better alignment with the pace of change in highly dynamic environments;
· Use of automated compliance monitoring tools, which can help save time and resources in gathering evidence;
· Using tools to help automate the collection of evidence and data, to run trends and provide insights.
If you're interested in the benefits of continuous auditing and implementation, the most important thing is to talk to your auditor and get them involved early on. Auditors are so integrated into the audit process that their perspective is essential. If you don't involve them early on, you risk backtracking because they don't understand the new process and how they can ensure that the data you're providing is accurate and complete.
Your auditor will make the transition with you. So, by getting them involved early, you can rely on their auditing expertise to answer questions and guide you in ways that still maintain your independence. The auditor helps in the process of transitioning to a continuous audit, analyzes whether it is feasible for your organization, checks what data your technology tool needs to collect, as well as how it works.
The next step should be the identification of controls, which can be easily measured in a continuous audit approach. Work with your auditor to identify when certain evidence may be collected and how often. Then identify the tools that can support the process.
The use of audit tools can significantly reduce the burden of gathering evidence. Organizations subject to many audits throughout the year will have a better return on investment by implementing continuous audit tools. Examine tools you can leverage for your specific audit situation and needs. Implementing a continuous audit is a big transition, and starting small will allow you to continue developing features over time.
When reviewing your options for an automated audit collection tool, there are several things to consider:
· Does the tool cover your technical environment? (eg Google Cloud, on-premises servers, etc)?
· Can it connect to the environment and extract data from it?
· Does it cover related technologies (eg endpoint protection, mobile device management, firewalls, vulnerability scanners, ticketing systems, logging and audit monitoring)?
· Does it cover non-technical areas such as security awareness training solutions?
· Are your compliance standards simple to set up?
· What is the quality of the reports? Some tools do not satisfy what the auditor needs to understand the source of information, such as dates and times when data was extracted.
· What configuration will the tool require to meet your auditing needs? What overhead is associated with the tools? What does ongoing tool management entail?
Finally, you need to determine whether you are confident that the information the tool is collecting is complete. The tools should save you time and effort and make you more efficient. They shouldn't make your life difficult.
If you would like to learn more about continuous auditing and how to implement a continuous audit, please contact TATICCA. We are experienced independent auditors and we follow continuous auditing. We can advise on the strengths and quality of tools unique to your situation.
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TATICCA – ALLINIAL GLOBAL also provides integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training services. For more information, access www.taticca.com.br or e-mail taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.