Innovation and practice of continuous auditing

The traditional audit paradigm is outdated in the real time economy. Innovation of the traditional audit process is necessary to support real time assurance. Practitioners and academics are exploring continuous auditing as a potential successor to the traditional audit paradigm. Using technology and automation, continuous auditing methodology enhances the efficiency and effectiveness of the audit process to support real time assurance. This paper defines how continuous auditing methodology introduces innovation to practice in seven dimensions and proposes a four-stage paradigm to advance future research. In addition, we formulate a set of methodological propositions concerning the future of assurance for practitioners and academic researchers.

Research Highlights▶ Continuous auditing enhances the audit process to support real time assurance. ▶ Continuous auditing is a potential successor to the traditional audit paradigm. ▶ Defines how continuous auditing methodology introduces innovation to audit practice. ▶ Propose a four-stage continuous auditing paradigm to advance future research. ▶ Formulate a set of methodological propositions concerning the future of assurance.