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32

Continuous Audit

An audit approach that tests controls and analyzes data continuously, rather than only at periodic intervals, using automation to detect control failures and anomalies close to when they happen.

Traditional audits sample a point in time, leaving long gaps where problems go undetected. Continuous audit uses automated, ongoing testing, often over full data populations, to monitor controls and flag exceptions as they arise. It increases assurance and shortens the time to detect control breakdowns, and it is a marker of audit maturity and innovation, closely tied to audit automation.

Introduced in: Audit and Assurance

Examples

  • Automatically testing access controls daily instead of once a year.
  • Flagging a control exception as soon as it occurs rather than at the next audit.
  • Analyzing the full transaction population continuously for anomalies.

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