Page 486 - ITGC_Audit Guides

Appendix – Three Examples of Continuous Auditing

abnormal, fabricated, or potentially fraudulent and provided enhanced opportunities to deter fraud and
patterns. An example of an abnormal trend analysis avoid surprises.
for one country is below.

200
180
160
140
120
100
80
60
40
20
0
10 20 30 40 50 60 70 80 90
Observed Expected

• Regression analysis was used to identify outliers. In the
example below, regression analysis identified outlier
countries using the total value of the MJV over the
trial balance.

MJV_d
5,000,000,000
China
4,000,000,000
India
95% confidence intervals
3,000,000,000
LIne of Best Fit
2,000,000,000

1,000,000,000
UK
0

-1,000,000,000
0 1,000,000,000 2,000,000,000 3,000,000,000 4,000,000,000 5,000,000,000 6,000,000,000
TB
• What-if analyses were used to predict future
relationships between variables.

4. Collaborate on Reporting Efforts
The ongoing risk assessment was designed to automatically
populate outputs into graphs, tables, and other visuals
for audit reports and dashboards. Audit dashboards were
created systematically and then the process was expanded to
include management dashboards. This avoided duplication
of data and efforts required to generate reports and publish
results for management. Management was better able to
monitor key performance indicators. Collaboration helped
internal auditors understand management’s continuous
monitoring results. Internal audit took care to maintain its
independence and not take ownership of risks. Continuous
monitoring reports informed management’s action plans

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