Advancing Audit Practices through Technology: A Comprehensive Review of Continuous Auditing

Ashab Farras, Amjad Ali and Marc Audi

MPRA Paper from University Library of Munich, Germany

Abstract: Continuous auditing has emerged as a transformative practice within the accounting and auditing professions, driven by rapid technological advancements and the growing demand for real-time financial assurance. Traditional audit practices rely on manual work, increasing the risk of human error and repetitive tasks. But Continuous auditing is powered by transformative tools like robotic process automation which eliminates these barriers by automating routine processes, reducing errors, and freeing employees from repetitive work. This paper examines the evolution of continuous auditing, its integration with advanced technologies such as artificial intelligence, robotic process automation, blockchain, and data analytics, and the broader implications for auditors, organizations, and academic institutions. Such advanced technology works together in continuous auditing to enhance accuracy, automate processes, and ensure data accuracy. Synergy in these advanced technologies enhanced audit efficiency. Through a comprehensive review of scholarly literature, the study underscores how continuous auditing facilitates real-time monitoring, improves audit quality, and reduces risks associated with traditional audit methods. Nevertheless, its adoption presents several challenges, including the management of information overload, the preservation of auditor independence, and the resolution of skill deficiencies among professionals. The 2024 BDO Audit Innovation Survey found that more than two-thirds (69%) of finance leaders said establishing data governance and internal data management is a barrier to a smooth audit experience. According to a 2019 ISACA survey, nearly two-thirds of organizations say the tech skills gap is impacting IT audits. The paper concludes by stressing the critical need to align auditing practices, professional training, and technological innovation to get the maximum benefits of continuous auditing in a digitally driven business environment.

Keywords: AI; RPA; Accuracy; Sample; Audit Frequency; Automation and Training (search for similar items in EconPapers)
JEL-codes: G3 (search for similar items in EconPapers)
Date: 2025
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