tailieunhanh - Harnessing the Power of Continuous Auditing_9

Tham khảo tài liệu 'harnessing the power of continuous auditing_9', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Internal Audit Department 229 was no value in the work performed until the report is being developed. The bottom-line reason that the non-value add will not be recognized until the report generation will be that the internal audit department did not understand the business unit operations or objectives. There are no shortcuts when it comes to developing or executing a continuous auditing methodology. To be successful dedicate the time and resources to plan effectively. Recognizing the Limitations As was discussed and detailed in Chapter 5 certain business areas and processes are not conducive to the application of a continuous auditing methodology. The most important aspect of this challenge is to recognize that it is truly a challenge that if ignored will impact the effectiveness of the continuous auditing program. Through research and years of experience of successful implementation and execution of continuous auditing methodologies the limitations have revealed themselves. The limitations identified in Chapter 5 judgment and operational complexity are not the only ones but they are two of the biggest ones. When planning an auditing program of a highly complex operational process such as financial statement generation or an operational process requiring a significant amount of judgment or interpretation such as underwriting consider whether the continuous auditing methodology is the best approach to test these control environments. This is not to say that you could not execute a continuous auditing program in either one of these areas it can be done. The challenge lies in determining the most critical controls to test in either scenario. Remember that anytime you incorporate judgment or interpretation into a process there is a significant amount of variation in the processing requirements because of the latitude given to people working in these areas. The judgmental areas rely on team members experience to interpret the information and make risk decisions. .