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Towards a continuous auditing philosophy

Ruiter, Bryan (2017) Towards a continuous auditing philosophy.

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Abstract:PwC sees a trend of ongoing automation in the accountancy practice propelled by the growing adoption of IT solutions (PwC, 2015). Despite these advancements audits are conducted twice a year. Which results in current information not being assured and may lead to unidentified risk incorporation. The time gap between risk incorporation and identification is a period where an organization takes full risk exposure. While in hindsight an organization might have been willing to mitigate this risk. At this moment PwC does not have a costefficient practice to do continuous risk assessments. However if such practice exists PwC’s value proposition will increase. The aim of this research is to design a framework that PwC could use to implement a continuous auditing (CA) philosophy in their practice. This research project does not only propose such framework but it also tests the feasibility of a continuous auditing solution by simulating the functioning of designed CA algorithms on a Purchase-to-Pay process with real data. This simulation showed that a CA solution is likely to be feasible. However it also showed that the success of a CA solution depends on the IT maturity of the organization including the fit between IT and formalized business processes.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:54 computer science, 83 economics, 85 business administration, organizational science
Programme:Industrial Engineering and Management MSc (60029)
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