AUDIT ANALYTICS AUDIT

ESSAY 1: CONTINUOUS AUDITING—A NEW VIEW
Figure 1-4: Expanded Scope of CA including Compliance Monitoring:
An evolving continuous auditing framework
The original framework of continuous assurance can be expanded into
four elements: data, control, risk, or compliance. Figure 1-4 expands
Vasarhelyi, Alles, and Williams (2010) components to add an element of
compliance monitoring, expanding the scope of the CA and CM effort.
The same considerations of opacity of the data processing environment
and the difficulty of access to its information apply to all elements of the
auditing framework that evolved since the AT&T CPAS effort.
3. INFORMATION TECHNOLOGY AND THE
AUDITOR
Traditional auditing has changed considerably as a result of changes in
IT, including more advanced ERP systems, increasing the use of on-line
transactions with both customers and suppliers, use of the cloud, and the
rapid expansion of data available for use by management and auditors.
The continuously evolving IT landscape leads to a variety of audit
challenges that compound over time, as summarized in table 1-6
(Adapted from Vasarhelyi and Halper, 1991).
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