Question

What is continuous assurance? What are the major components of continuous assurance? Select a real-life company which is using or have implemented continuous assurance and discuss the negative events impacting on the implementation of continuous assurance.

Answer 1

continuous assurance

Continuous Assurance is defined as the application of emerging information and communication technologies to the standard techniques of auditing, both mandatory periodic auditing and internal auditing. In that view, Continuous Assurance is a new step in the evolution of transactional auditing from manual techniques to automated methods. The term “continuous” does not mean real time, but to be effective considering, respecting and being consistent with the pulse and rhythm of each organizational transaction and process

Furthermore, Continuous Assurance emerges as a set of services which aims to restore the credibility of auditing, simultaneously allowing organizations to meet the requirements of regulations. Hence, it can diagnose the company's viability and allegations of fraud and illegal acts, assessing the economy, efficiency and effectiveness of organizations

major components of continuous assurance

>Continuous controls monitoring (CCM) which consists of a set of procedures used for monitoring the functionality of internal controls

> Continuous data auditing (CDA) which verifies the integrity of data flowing through the information systems

> Continuous Risk Monitoring and Assessment (CRMA) which is used to dynamically measure risk and provide input for audit planning.”

An example of Continuous Assurance in practice can be seen at Itau Unibanco, one of Brazil’s largest private banks. Over the last five years it has monitored its network of 1400 branches on a daily basis using a set of 18 analytic tests. This monitoring has reduced the average time for an onsite branch audit