Search results

The purpose of this paper is to introduce the continuous auditing system based on continuous monitoring and its implementation methodology; also to present a systematic case study of actual continuous auditing systems implemented in the financial industry and the manufacturing industry.

The paper examines the method of implementing the continuous auditing system in the enterprise resource planning (ERP) environment, and suggests how the continuous auditing system can take firm root by looking at the successful introduction of the continuous auditing system in the financial industry and the manufacturing industry.

The proposed method of implementing the continuous auditing system has the 2stage approaches which can be applied to various kinds of companies in the ERP‐based environment. In addition, the proposed cases have the important practical implications acquired in the process of implementing the continuous auditing system in the financial industry and the manufacturing industry.

This study will help many corporations facing various types of corruption or circumvention of internal control, with their internal auditing, by showing them how to use the continuous auditing system to reinforce internal control. Also, it will make the independent auditor understand audited company's continuous monitoring system and lead to use the infrastructure for efficient and effective external auditing.

The proposed method and cases of implementing the continuous auditing system offer an innovative approach to auditing in the ERP‐based environment because it facilitates both internal auditor and external auditor to achieve the audit objectives efficiently and effectively.

The advances and continuous development of technology have been identified as significant influences on the accounting profession (AICPA, 1998). In the last twenty years, both academia and the accounting profession have been giving much attention to the demand and opportunity for audits to be performed automatically, continuously and in nearly real time. This paper presents a comprehensive review of continuous auditing research by providing an overview of the emergence and growth of the continuous auditing literature and classifying the extant continuous auditing research on the basis of four research characteristics indicated by a newly developed research taxonomy.

Modern production facilities produce large amounts of data. The computational framework often referred to as big data analytics has greatly improved the capabilities of analyses of large data sets. Many manufacturing companies can now seize this opportunity to leverage their data to gain competitive advantages for continuous improvement. Six Sigma has been among the most popular approaches for continuous improvement. The data-driven nature of Six Sigma applied in a big data environment can provide competitive advantages. In the traditional Six Sigma implementation – define, measure, analyze, improve and control (DMAIC) problem-solving strategy where a human team defines a project ahead of data collection. This paper aims to propose a new Six Sigma approach that uses massive data generated to identify opportunities for continuous improvement projects in a manufacturing environment in addition to human input in a measure, define, analyze, improve and control (MDAIC) format.

The proposed Six Sigma strategy called MDAIC starts with data collection and process monitoring in a manufacturing environment using system-wide monitoring that standardizes continuous, attribute and profile data into comparable metrics in terms of “traffic lights.” The classifications into green, yellow and red lights are based on pre-control charts depending on how far a measurement is from its target. The proposed method monitors both process parameters and product quality data throughout a hierarchical production system over time. An attribute control chart is used to monitor system performances. As the proposed method is capable of identifying changed variables with both spatial and temporal spaces, Six Sigma teams can easily pinpoint the areas in need to initiate Six Sigma projects.

Based on a simulation study, the proposed method is capable of identifying variables that exhibit the biggest deviations from the target in the Measure step of a Six Sigma project. This provides suggestions of the candidates for the improvement section of the proposed MDAIC methodology.

This paper proposes a new approach for the identifications of projects for continuous improvement in a manufacturing environment. The proposed framework aims to monitor the entire production system that integrates all types of production variables and the product quality characteristics.

This paper aims to analyse the implementation challenges faced by internal audit departments of public sector organisations and central banks when implementing continuous auditing (CA) systems. CA aims to monitor internal control systems and risk levels on a continuous basis to support the audit process. This study identifies the implementation challenges of CA systems and proposes adequate countermeasures.

This study employs the design science information system research and the design science research process methodologies to ensure the rigor of this analysis. These research methodologies are adopted to tackle identified organisational problems and propose solutions. This methodological approach consists in the following phases: identification of the problems and motivation; definition of the objectives of the solution; research design and development; evaluation; communication.

This study detects several implementation challenges for public sector organisations and central banks and proposes adequate solutions. This study finds that these challenges are related to organisations’ complexity, institutional rigidity, potential threats to internal auditors’ independence and the issue of considering CA system as a “real time error correction” mechanism. The solutions involve the development of a business process focussed audit approach to enable internal auditors to analyse CA indicators, and the use of CA systems to support each phase of the audit process.

This study contributes to the scant strand of literature on internal auditing in central banks. Given the exceptional demand for guidance concerning internal auditing in the public sector and in central banks, this paper provides guidelines for these organisations to implement CA systems and to tackle implementation challenges. The analysis allows internal audit departments within central banks to better support their organisations in the achievement of their important regulatory and policy objectives.

The pressure is on organizations to go beyond automating their internal audit activities and develop and integrate internal auditing into business processes of the enterprise. This paper aims to propose a “full power” continuous auditing (CA) model with three key components: electronic audit evidence functions; intra‐process auditing; and inter‐process auditing.

This paper follows a design science approach by identifying relevant problems from the current literature, defining the objectives of the study, designing and developing the “full power” CA model, and evaluating the model. The model supports business process‐centric auditing and enhances the business monitoring capacities of organizations enabling the fulfillment of increasingly stringent compliance requirements with internal policies as well as external regulations.

This work has attempted to fill the gap between the enterprise solutions offered by enterprise system providers and a structured approach to auditing within enterprise environments by proposing the IIPCA model which combines the automated controls inherent in the systems with continuous audits based on electronic audit evidence. The approach provides for auditing both within and between processes ensuring comprehensiveness of the audit process.

The paper makes a contribution by proposing a “full power” continuous auditing model on the principle of continuous monitoring and with predefined building block components; facilitating the integration of continuous auditing within business information processing in an enterprise using different building blocks; and giving practitioners insight on the adoption of the CA in the enterprise and how it will enhance their audit effectiveness, and audit efficiency.

Advancements in real-time water monitoring technologies permit rapid detection of water quality, and threats from waste loads. Water Framework Directive mandating the establishment of Member States’ water resources monitoring, presence of hazardous contaminants in effluents, and perception of vulnerability of water distribution system to attacks, have spurred technical and economic interests. The paper aims to discuss these issues.

As alternative to traditional analyzers, chemosensors, operate according to physical principles, without sample collection (online), and are capable of supplying parameter values continuously and in real-time. Their low selectivity and stability issues have been overcome by technological developments. This review paper contains a comprehensive survey of existing and expected online monitoring technologies for measurement/detection of pollutants in water.

The state-of-the-art in online water monitoring is presented. Application examples are reported. Monitoring costs will become a lesser part of a water utility budget due to the fact that automation and technological simplification will abate human cost factors, and reduce the complexity of laboratory procedures.

An overview of applicable instrumentation, and forthcoming developments, is given. Technological development in this field is very rapid, and astonishing advances are anticipated in several areas (fingerprinting, optochemical sensors, biosensors, molecular techniques). Online monitoring is becoming an ever-important tool not only for compliance control or plant management purposes, but also as a useful approach to pollution control and reduction, minimizing the environmental impact of discharges.

Continuous glucose monitoring (CGM) is a notable invention introduced in the biomedical industry. It provides valuable information about intermittent capillary blood glucose that is normally unattainable by regular clinical blood sample tests. CGM includes several progressive facilities such as instantaneous and real-time display of blood glucose level, “24/7” coverage, continuous motion of alerts for actual or impending hypo- and hyperglycemia and the ability to characterize glycemic variability. CGM allows users and physicians to visualize and diagnose more accurate and precise rate of change of glucose by capacitating small, comfortable, user-friendly sensor devices. Sometimes, this vital information is shared to the personal message box over Internet. In short, CGM is capable to inform, educate, motivate and alert (IEMA) people with diabetes. Despite the huge expectation with CGM, the available solutions have not attracted much attention among people. The huge potential of CGM in future diabetic study relies on the successful implication of the CGM. This paper aims at disseminating of state-of-the-art knowledge about existing work around the CGM.

This paper presents a comprehensive systematic review on the recent developments in CGM development techniques that have been reported in credible sources, namely PubMed, IEEE Xplore, Science Direct, Springer Link, Scopus and Google Scholar. Detailed analysis and systematic comparison are provided to highlight the achievement and future direction of CGM deployment.

Several key challenges are also portrayed for suitable opportunistic orientation. CGM solutions from four leading manufacturers such as Tandem, Dexcom, Abbott and Medtronic are compared based on the following factors including accuracy (% MARD); sensor lifetime, calibration requirement, smart device, compatibility and remote monitoring. Qualitative and quantitative analyses are performed.

This work can be a valuable source of reference and guidance for future research in this field.

During a pandemic, with businesses implementing social distancing protocols and work-from-home strategies, the use of continuous controls monitoring (CCM) may add value to the internal audit function. This study aims to examine the use of CCM technologies and the impact on the internal audit function during a pandemic.

This study adopted a case study approach for this study because it focuses on questions of “how” and “what.” Case studies provided an opportunity for an in-depth analysis of the phenomena being investigated. Semi-structured interviews were used to collect data. This study did not use sampling. Instead, multiple case studies were used for data collection.

Based on the findings, this study makes several contributions to the literature, for example, in health-care evidence suggests the pandemic has caused internal audit to focus on risk areas. Other industries, such as retail, have invested in CCM. However, in all cases, education and preparedness (or the lack thereof) appeared to significantly influence uptake of CCM. Organizations that made prior investments in CCM technologies experienced greater acceptance in the face of changing demands. Training in emerging technologies is a key competency in supporting audit operations in changing environments.

As the study was conducted with a small sample of cases, findings cannot be extrapolated nor generalized beyond the case study organizations.

This study found that several factors limit adoption, exploitation and further development of CCM technologies, such as lack of top management support, acceptance of CCM technologies and suitable education and training of internal audit staff.

This study addresses the issue of the value that CCM offers organizations and whether it is a silver bullet that the internal audit profession needs, particularly when physical access to organizations may be restricted. The COVID-19 pandemic placed considerable focus on digital access. Better IT systems and more data will allow organizations to better support employees, inform strategic and financial decisions and engage stakeholders. During the recovery phase, leveraging investments in CCM technologies will contribute to internal audits’ ability to help clients to manage organizational risk.

The purpose of this paper is to analyze the hurdles, compared with that in the United States, for the implementation of Continuous Auditing in China. As a timely, cost-saving and efficient auditing method, continuous auditing is being increasingly adopted throughout the world. However, while it is increasingly applied in the USA, continuous auditing is still in its infancy in China.

This paper compares and contrasts China and the USA in three important dimensions that determine the “economic architecture” of assurance: the business environment, the audit profession and technology.

The authors find that excessive government intervention in business, the lack of competition, independence of auditors, the support from management and the continuous auditing-specific regulations, as well as the technology gap between these two countries, are the main barriers for the implementation of continuous auditing in China.

The findings of this paper provide better understanding of the drivers of continuous auditing adoption in the USA and the barriers toward doing so in China.

The term “continuous auditing” has never been formally introduced until the release of the draft of the Internal Control Audit Guide in 2011.

The paper highlights how technology by itself is not deterministic, but given the extraordinary rise in the Chinese economy in both its size and its sophistication, it has be to assumed that its “leapfrog” into parity if not outright leadership in continuous assurance is still a matter of “when” and not of “if”.

The purpose of this paper is to investigate the influence of six variables: strategic focus; monitoring continuous improvement development; integration of continuous improvement; management of continuous improvement; involvement/engagement and learning; and knowledge sharing, on sustainability of continuous improvement capabilities in the context of the manufacturing industries in Penang, Malaysia. The paper determines the impact of organizational self‐assessment towards the relationship of these six factors and sustainability of continuous improvement capabilities.

The study opted for an exploratory study using the survey instrument to collect data. The questionnaire was published through the web and manual distribution. For the web survey, e‐mails were broadcasted to invite the random employees to participate in the e‐mail survey, where respondents were directed to answer the attachment that contained the questionnaire. Online survey method is chosen because it is convenient, time and cost effective to intact with the respondents who are dispersed in different geographical areas.

The paper provides empirical insights about how strategic focus, management of continuous improvement and learning/knowledge sharing positively influence on sustainability of continuous improvement capabilities in an organization. It suggests that organizational self‐assessment has a mediating effect on the relationship between strategic focus, learning/knowledge sharing and sustainability of continuous improvement capabilities.

The complex nature of the process of sustaining continuous improvement capabilities as a research topic places limitations on this study, particularly in the area of sample selection and data collection. The major sample selection at the manufacturing organizations is difficult because an organization's perception in terms of continuous improvement may not be the same, thus it is not easy to ascertain relevant sample characteristics.

The implications of this study highlighted that the most effective predictor for sustaining continuous improvement capabilities was strategic focus, in addition, this study provided insight into the mediating effect of organizational self‐assessment towards the effectiveness of sustaining continuous improvement capabilities in the manufacturing industry.

This paper fulfils an identified need to study how the effectiveness of sustaining continuous improvement capabilities can be developed.