Continuous Auditing and Risk-Based Audit Planning

• In Event: Break and Research & Education Poster Forum

Abstract

Due to significant changes in the risk environment of organizations as a result of globalization
and digitalization a continuous perspective in audit activities is required. Continuous
Auditing (CA) is one possible way to include a continuous perspective in audit
activities. Specifically, the Internal Audit Function (IAF) is using CA as an audit technique
in order to add this perspective to their risk assessment. This study examines factors
associated with the use of CA information in the risk-based audit plan (RBAP) of the IAF.
We use survey data from 264 chief audit executives to address our research question. Consistent
with our expectations, we find several factors having a significant positive influence
on the use of CA information in the RBAP. From the IAF’s point of view these factors
include the collaboration with the external auditor, the use of rolling planning, the importance
of the audit committee, the importance of data analysis in audit planning and the
appropriation of results for fraud prevention. Finally, we discuss the implications of these
findings for research and practice.

Authors

• Marc Eulerich, University Duisburg-Essen

• Christine Georgi, University Duisburg Essen

• Alexander Schmidt, University Duisburg Essen