Continuous Auditing in ERP System Environments: The Current State and Future Directions

Abstract:     
Recent research has focused heavily on the practicality and feasibility of alternative architectures for supporting continuous auditing. In this paper, we explore the alternative architectures for continuous auditing that have been proposed in both the research and practice environments. We blend a focus on the practical realities of the current technological options and ERP structures with the emerging theory and research on continuous assurance models. The focus is on identifying the strengths and weaknesses of each architectural form as a basis for forming a research agenda that could allow researchers to contribute to the future evolution of both ERP system designs and auditor implementation strategies. There are substantial implications and insights that should be of interest to both researchers and practitioners interested in exploring continuous audit feasibility, capability and organizational impact.

Number of Pages in PDF File: 43

Keywords: Continuous assurance, continuous auditing, continuous monitoring, enterprise systems, enterprise resource planning (ERP) systems, enterprise risk management, embedded audit modules, management control layer

JEL Classification: M40, 032

working papers series