Question

Continuous assurance (continuous auditing)

A) Continuous Auditing and Assurance Practices.
B) Assurance Techniques in Continuous Auditing.
C) Ongoing Auditing for Continuous Assurance.
D) Continuous Assurance in Audit Procedures.

Answer 1

Continuous assurance (or continuous auditing) is an auditing practice where audit processes are executed continuously rather than at specific points in time, using technology to monitor an organization’s activities and assess risks in real-time.

Step-by-step explanation:

The concept referred to in the student’s question deals with Continuous assurance (or continuous auditing) which is a component of modern auditing practices. This involves using automated tools and systems to ensure that audit processes are carried out on a continuous basis rather than at a single point in time.

Continuous assurance aims to provide real-time monitoring and assessment of an organization’s financial and operational activities. This helps in identifying any issues or areas of risk promptly. It’s worth noting that continuous assurance encompasses both Continuous Auditing and Continuous Monitoring, where the former involves the audit function constantly collecting audit evidence to analyze and assess controls and transactions, while the latter is more management-driven, focusing on oversight and ensuring business processes are operating effectively.