An analysis of using state of the art technologies to implement real-time continuous assurance

Chien Cheng Lin, Fengyi Lin, Deron Liang

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

5 Scopus citations

Abstract

With the integrity of the information in financial reports being questioned and the shift towards more rapid financial reporting, the auditing profession has found that Continuous Assurance is an effective means of facilitating early detection of fraudulent financial reports. However, according to recent surveys, Continuous Assurance has not been widely applied to date. This fact motivates us to investigate if state-of-the-art IT technologies are capable of supporting Continuous Assurance. The contribution of this study is threefold. First, we develop an ISO/IEC 9126-based Continuous Assurance evaluation framework with six technical criteria. Second, based on the proposed framework, we review two (real-time) IT technologies, namely the Embedded Audit Module (EAM) and the Interceptor mechanism, and explore the feasibility of using them to implement real-time Continuous Assurance (CA). Overall, the interceptor approach outperforms the EAM approach, although neither approach satisfies all of the framework's technical criteria. Third, we find that using the interceptor mechanism in the middleware layer, rather than in other layers, improves the implementation of a real-time auditing interceptor. In light of the proposed evaluation framework, we consider the future development of a middleware interceptor technology that can be used to firmly establish a real-time Continuous Assurance framework.

Original languageEnglish
Title of host publicationProceedings - 2010 6th World Congress on Services, Services-1 2010
Pages415-422
Number of pages8
DOIs
StatePublished - 2010
Event2010 6th World Congress on Services, Services-1 2010 - Miami, FL, United States
Duration: 5 Jul 201010 Jul 2010

Publication series

NameProceedings - 2010 6th World Congress on Services, Services-1 2010

Conference

Conference2010 6th World Congress on Services, Services-1 2010
Country/TerritoryUnited States
CityMiami, FL
Period5/07/1010/07/10

Keywords

  • Continuous Assurance
  • Frauds
  • Interceptor
  • ISO/IEC 9126
  • Middleware
  • Risk management

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