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Meeting Challenges and Expectations of Continuous Auditing in the Context of Independent Audits of Financial Statements
Author(s) -
Du Hui,
Roohani Saeed
Publication year - 2007
Publication title -
international journal of auditing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.583
H-Index - 21
eISSN - 1099-1123
pISSN - 1090-6738
DOI - 10.1111/j.1099-1123.2007.00359.x
Subject(s) - audit , joint audit , accounting , auditor independence , context (archaeology) , common object request broker architecture , xml , business , computer science , audit plan , business reporting , internal audit , world wide web , programming language , xbrl , paleontology , biology
This paper proposes a continuous auditing model that provides external auditors the opportunity to audit clients continuously or on a more frequent basis while reducing the possibility of compromising auditor independence. The model requires the auditor's system to be separated from the auditee's system so that the two systems do not interfere with each other. The auditor's system must also communicate smoothly and effectively with the auditee's system to continuously process data captured from that system. We show how the new technology using XML (eXtensible Markup Language) and CORBA (Common Object Request Broker Architecture) can help effectively connect the auditor's system to the auditee's system, thereby supporting smooth communication between the two independent systems. We also introduce the concept of continuous auditing cycle, which helps define the engagement period between client and auditor and makes the audit within each cycle continuous.