AUDIT ANALYTICS AUDIT

AUDIT ANALYTICS AND CONTINUOUS AUDIT:LOOKING TOWARD THE FUTURE
CRMA—GENERAL PROCESS
Vasarhelyi (2011) further describes the CRMA architecture by elaborating
on and discussing its various components and functionalities (figure 6-2).
Figure 6-2: Schemata of CRMA Process (Adapted from Vasarhelyi 2011)
In the proposed CRMA framework, three general types of risks are
identified and monitored. These include business process or operational
risks, environmental risks, and black swans (Taleb 2010). Business
process risks are largely inherent and attributable to the business itself as
well as its industry. Environmental risks include other forces in the
internal environment such as infrastructure and information security
issues, and risks in the macro-environment including those residing in
the political, competitor, and economic arenas (Kuenkaikaew and
Vasarhelyi 2013; Hill 2008). A black swan is a risk that has a very low
probability of transpiring, but would likely carry substantial costs if
materialized. A black swan is formally defined as "an event or occurrence
that deviates beyond what is normally expected of a situation and that
would be extremely difficult to predict." (Financial Times 2014).
Furthermore, the emergence of a black swan can have catastrophic and
unpredictable outcomes. Consequently, although this type of event is
problematic to anticipate, it is vital that monitoring mechanisms are
established to accumulate and maintain information about these
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