Minimizing Cost of Continuous Audit: Counting and Time Dependent Strategies

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