View Complete Reference

Nigrini, MJ (2000)

Continuous Auditing

Online e-print; last accessed September 28, 2015.

ISSN/ISBN: Not available at this time. DOI: Not available at this time.

Abstract: The Panel on Audit Effectiveness concluded, amongst other things, that the auditing profession needs to develop new approaches to auditing, including some form of continuous auditing, with a greater emphasis on technology-driven analytical and diagnostic procedures (The Panel on Audit Effectiveness, 2000). A CICA report concluded that continuous audits are viable under certain conditions and that automated “alarm triggers” would be needed to signal anomalies and errors. They called for research to show how auditors could effectively use sophisticated automated audit tools (CICA, 1999). This paper suggests two digital analysis based tests that might be used by auditors as a technology driven analytical and diagnostic procedure. The first-two digits test checks whether the first-two digit proportions of the current data matches that of past audited data. The summation test analyzes the totals of the numbers with specified first-two digits to test for the inclusion of high dollar values in the current set that do not match those in the past audited data. A suggestion for future research is for goodness-of-fit tests to assist auditors in concluding whether material errors might have occurred.

@misc{, AUTHOR = {Nigrini, MJ}, TITLE = {Continuous Auditing}, HOWPUBLISHED = {\url{}}, YEAR = {2000}; NOTE = {last accessed Sep 28, 2015}, }

Reference Type: E-Print

Subject Area(s): Accounting