Chapter 3
Continuous Auditing Methodology Development
Continuous Auditing Methodology
In an effort to expedite the documentation of the continuous auditing methodology and reduce the amount of development duplication, the audit team can use the existing audit methodology as a guide/outline. The continuous auditing methodology will contain the same components as the risk-based audit approach except that it will be a more streamlined version. Your current methodology should contain the approach objectives and detailed directions on how to plan an audit, document process flows and controls, develop a test plan, and effectively communicate the test results.
When presented with any new technique, approach, or methodology, there is always the temptation to jump right in and start using it without developing the proper standards. Speaking from firsthand experience, I can tell you that that is not the smartest or best course of action. One of the biggest mistakes an audit department can make is assuming that the audit team fully understands the methodology and how, when, and where using it would be the most beneficial. Remember, this methodology, while similar to a full-scope risk-based audit in some respects requires a totally different mentality and specificity, starting with the selection of a target area, through the planning, to the testing selection, all the way through to the execution.
Consider the level of planning and effort that went into the development of your current audit ...
