Written Task on Chapter 10: Continuous Monitoring

2. Explain why auditing every transaction may be a requirement in today’s risk

environment.

With the rapid change in dynamic forces of businesses, complexity emerges and
organizations grow resulting to multiplicity of intricacies of the risk environment. These
situations led to a mechanism that necessitates auditing every transaction to mitigate the
disadvantageous effects of today’s risk environment. As businesses continue to develop, risk
intricacies go with its growth therefore requiring a thorough audit of transactions to eradicate or
abate errors and possible frauds that might be overlooked if transactions are not entirely audited.

3. Is auditing all transactions feasible? Why or why not?

In response to the growing size and complexities of businesses, new software tools
became available to address such thereby making the audit of all transactions viable. It is through
continuous auditing wherein the use of data storage and data analysis enables the feasibility of
auditing all transactions. Recent software tools permit the storage of more data and allow
transactions to be queried and analyzed by internal auditors. The approach basically supports the
examination of the entire population thereby eliminating the limitations of sampling and
promoting the viability of auditing every transaction where risks of the recent business
conditions are present.

5. Describe five continuous analysis routines and how they support the efforts of internal
auditors.