Continuous Audit

AAA

DEFINITION of 'Continuous Audit'

An auditing process that examines accounting practices continuously throughout the year. Continuous audits are usually technology-driven and designed to automate error checking and data verification in real time. A continuous audit driven system generates alarm triggers that provide advance notice about anomalies and errors detected by the system.

INVESTOPEDIA EXPLAINS 'Continuous Audit'

Continuous auditing is not to be confused with computer-aided auditing. In computer-aided auditing, the auditor is simply being assisted by technology, such as spreadsheets to complete a periodic audit. Computer-aided auditing is driven solely by the auditor, while continuous auditing is meant to run automatically at regular intervals.

RELATED TERMS
  1. Audit Cycle

    The accounting process that auditors employ in the review of ...
  2. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  3. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
  4. Independent Auditor

    A certified public accountant who examines the financial records ...
  5. Internal Audit

    The examination, monitoring and analysis of activities related ...
  6. Andersen Effect

    A reference to auditors performing more careful due diligence ...
Related Articles
  1. Surviving The IRS Audit
    Taxes

    Surviving The IRS Audit

  2. Creative Accounting: When It's Too Good ...
    Active Trading

    Creative Accounting: When It's Too Good ...

  3. Examining A Career As An Auditor
    Professionals

    Examining A Career As An Auditor

  4. An Inside Look At Internal Auditors
    Professionals

    An Inside Look At Internal Auditors

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center