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Minimizing Cost of Continuous Audit: Counting and Time Dependent Strategies

23 Pages Posted: 31 Jan 2005  

Jagdish Pathak

University of Windsor - Odette School of Business

Ben Chaouch

University of Windsor - Odette School of Business

Ram S. Sriram

Georgia State University

Multiple version iconThere are 3 versions of this paper

Date Written: April 2003

Abstract

Why do we need to audit databases? The answer to this question depends on several factors, including the users and the applications that have accessed the data, the timing and the type of data modifications such as permissions or schema and so on. This paper examines certain strategies that have been suggested in the database auditing literature (see, e.g. Orman, 2001). Orman studied the counting, periodic and hybrid auditing strategies with the objective of minimizing the number of errors introduced during database access. Unlike Orman whose focus is on assessing the number of errors infilterating the system, we focus on the long run operating cost of running database audit. We use results from regenerative stochastic processes to derive expressions for the long run average cost under the counting and periodic auditing strategies. Future directions for research are also proposed.

Keywords: Audit Strategies, Database Auditing, Continuous Auditing, Poisson Process, Renewal

JEL Classification: M41, M1

Suggested Citation

Pathak, Jagdish and Chaouch, Ben and Sriram, Ram S., Minimizing Cost of Continuous Audit: Counting and Time Dependent Strategies (April 2003). Available at SSRN: https://ssrn.com/abstract=472967 or http://dx.doi.org/10.2139/ssrn.472967

Jagdish Pathak (Contact Author)

University of Windsor - Odette School of Business ( email )

401 Sunset
Windsor N9B 3P4, Ontario
Canada
519-253-3000 ext. 3131 (Phone)
519-973-7073 (Fax)

HOME PAGE: http://www.jagdishpathak.com

Ben Chaouch

University of Windsor - Odette School of Business ( email )

401 Sunset
Windsor N9B 3P4, Ontario
Canada

Ram S. Sriram

Georgia State University ( email )

P.O. Box 4050
Atlanta, GA 30302-4050
United States
404-651-4464 (Phone)
404-651-1033 (Fax)

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