The Adaptation and Routinization Processes of A Continuous Auditing System Implementation

How to adopt computer-assisted auditing techniques (CAATTs) quickly and develop a continuous auditing system are the critical issues for the implementation of automated auditing techniques. In this research, we study the technological adaptation process of a case company, which continuously implemented four CAATTs projects in three years. We summarized and analyzed the routinization process of how the case company adapted their computer-aided audit procedures from an experimental action to daily usage. An approach based on organizational routines theories was adopted to study group learning and interactions among project members, and to understand how they integrated automated auditing techniques and mechanisms into the existing manual auditing procedures. The process also reveals the incremental progress of an emerging routine from CAATTs adoption to continuous auditing systems. The research results show that the documentation of CAATTs projects and group learning among different functions contribute to the routinization of automated auditing procedures; the continuous auditing system based on the automated auditing program also contributes to routinely audited tasks. However, the improvisational nature of auditing activities, implicit characteristics within general auditing software, and rigidity of automatic auditing programs cause the resistance of internal auditors on CAATTs use, and also impede the emergence and flexibility of computer-aided auditing procedures

Auditoria Contínua - o Futuro da Auditoria no Contexto dos Enterprise Resource Planning

Os sistemas de informação empresarias, Enterprise Resource Planning (ERP), conjuntamente com as recentes tecnologias de negócios da era digital, tem levado a profundas mudanças no sistema de informação contabilístico. Neste contexto, a auditoria tradicional transforma-se com a realidade da auditoria contínua. O objetivo deste estudo é compreender e demonstrar o processo de evolução da auditoria tradicional para a auditoria contínua com o aparecimento dos sistemas de informação empresariais ERP´s. Esta investigação é do tipo exploratório-descritiva, de natureza qualitativa e realizada através de revisão da literatura. Os principais resultados demonstram, entre outros aspetos, a auditoriacontínua como o futuro da auditoria tradicional

Developing a Forensic Continuous Audit Model

Despite increased attention to internal controls and risk assessment, traditional audit approaches do not seem to be highly effective in uncovering the majority of frauds. Less than 20 percent of all occupational frauds are uncovered by auditors. Forensic accounting has recognized the need for automated approaches to fraud analysis yet research has not examined the benefits of forensic continuous auditing as a method to detect and deter corporate fraud. The purpose of this paper is to show how such an approach is possible. A model is presented that supports the acceptance of forensic continuous auditing by auditors and management as an effective tool to support the audit function, meet management’s regulatory objectives, and to combat fraud. An approach to developing such a system is presented

ARTIFACT EVALUATION IN INFORMATION SYSTEMS DESIGN-SCIENCE RESEARCH – A HOLISTIC VIEW

Design science in Information Systems (IS) research pertains to the creation of artifacts to solve reallife problems. Research on IS artifact evaluation remains at an early stage. In the design-science research literature, evaluation criteria are presented in a fragmented or incomplete manner. This paper addresses the following research questions: which criteria are proposed in the literature to evaluate IS artifacts? Which ones are actually used in published research? How can we structure these criteria? Finally, which evaluation methods emerge as generic means to assess IS artifacts? The artifact resulting from our research comprises three main components: a hierarchy of evaluation criteria for IS artifacts organized according to the dimensions of a system (goal, environment, structure, activity, and evolution), a model providing a high-level abstraction of evaluation methods, and finally, a set of generic evaluation methods which are instantiations of this model. These methods result from an inductive study of twenty-six recently published papers

Developing a Forensic Continuous Audit Model

Despite increased attention to internal controls and risk assessment, traditional audit approaches do not seem to be highly effective in uncovering the majority of frauds. Less than 20 percent of all occupational frauds are uncovered by auditors. Forensic accounting has recognized the need for automated approaches to fraud analysis yet research has not examined the benefits of forensic continuous auditing as a method to detect and deter corporate fraud. The purpose of this paper is to show how such an approach is possible. A model is presented that supports the acceptance of forensic continuous auditing by auditors and management as an effective tool to support the audit function, meet management’s regulatory objectives, and to combat fraud. An approach to developing such a system is presented

What Makes AI Different? Exploring Affordances and Constraints - The Case of Auditing

This study aims to gain a comprehensive understanding of the differences between classic IT and AI artefacts. To achieve this objective, the study employs a grounded theory literature review approach and analyses 81 papers related to the application of classic IT and AI artefacts in the auditing industry. Drawing on the Technology Affordances and Constraints Theory, we examine the actions that can be potentially enabled or restricted by using classic IT and AI artefacts. This analysis allows us to conceptualise and compare the affordances and constraints associated with these two types of artefacts. The study addresses the need for more research on AI from both social and technical perspectives. Our findings may facilitate practitioners in improving their business processes and promoting effective collaboration between humans and AI

Graduate Accounting Students\u27 Perception of IT Forensics: A Multi-Dimensional Analysis

Forensics and information technology (IT) have become increasingly important to accountants and auditors. Undergraduate accounting students are introduced to general IT topics but discussion of forensic knowledge is limited. A few schools have introduced an undergraduate major in forensic accounting. Some graduate schools offer accounting students an emphasis in forensic or fraud accounting that includes instruction in forensics and information technology. When students do not view the IT topics as being equally important to their careers as traditional accounting topics, these attitudes may reduce the quality of the course. In an effort to assess student attitudes, a survey of 46 graduate accounting students was conducted to measure two dimensions − knowledge and skills and interest and enjoyment − along nine common topics found in a forensics IT course. The association of the two dimensions was then measured. Also, the relationship between IT attitudes and the nine topics was measured along both dimensions. Fifteen hypotheses are presented and tested. Results are discussed to posit what instructors can do in order to increase the quality of the class and the positive perception of IT for accounting students

Auditoria com base na lei de Benford : estudo de conformidade de series macroeconómicas da economia mundial

A qualidade das decisões dos agentes económicos depende da autenticidade da informação disponível que suporta essas decisões. O objetivo principal desta dissertação é auditar algumas das principais séries temporais macroeconómicas das economias mundiais. Em concreto, verificar se há evidências que apontem para que os valores apresentados nas séries tenham sido corretamente medidos, ou se, pelo contrário, há evidências para a existência de erros de mensuração e/ou manipulação de dados, fazendo nesse caso com que a realidade possa não estar a ser corretamente retratada, o que naturalmente influenciará de forma negativa a qualidade das decisões tomadas pelos agentes económicos. O método de investigação utilizado neste estudo é o método quantitativo. A investigação quantitativa integra-se no paradigma positivista e tem como objetivo a identificação e apresentação de dados, indicadores e tendências observáveis. Neste tipo de investigação, as hipóteses, as variáveis e o projeto de investigação são sempre previamente definidos, baseando-se a validade dos resultados no controlo concetual e técnico das variáveis em estudo. É utilizada a lei de Benford como base para testar o grau de autenticidade dos valores apresentados em algumas séries temporais macroeconómicas. A maioria dos dados não apresenta desvios significativos em relação ao comportamento esperado pela lei para dados autênticos, pelo que, em geral, existem evidências para que os valores apresentados nas séries tenham sido corretamente medidos, o que é positivo para a qualidade das decisões dos agentes económicos. As variáveis analisadas têm no entanto diferentes níveis de autenticidade, com evidência para menor correção dos dados das variáveis PIB per capita e População, quando comparados com dados das variáveis Impostos e IDE. Os resultados indiciam também que, ao contrário do que se poderia esperar, o grau de autenticidade das séries não varia consoante o nível de desenvolvimento dos países. Por fim, os dados revelam ser mais autênticos na década atual do que na década de 90