Why does Internal Audit use Continuous Auditing?
Continuous auditing is used jointly with traditional auditing. While traditional auditing focuses more on a sampling approach and includes activities such as reviews of policies, procedures, approvals and reconciliations, continuous auditing is used to perform assessments automatically on a more frequent basis. Continuous auditing can help auditors to evaluate the adequacy of management’s monitoring function. Additionally, it supports risk identification and assessment for the entire audit universe and can be used when developing the annual audit plan by focusing audit attention and resources on areas of higher risk as well as the objectives of a specific audit.
