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

Il‐hang Shin, Myung‐gun Lee and Woojin Park

Managerial Auditing Journal, 2013, vol. 28, issue 7, 592-627

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.

Keywords: Auditing; External auditing; Internal auditing; Continuous auditing system; Continuous monitoring scenarios; Internal control; Key‐risk indicator; Enterprise resource planning system (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:maj-11-2012-0775

DOI: 10.1108/MAJ-11-2012-0775

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