Abstract: The minimization of cost is an important issue in the domain of continuous auditing (CA) research (Pathak, Chaouch & Sriram, 2005). This cited study of continuous audit of databases motivated us to work further and provide a general, complete and precise solution. In the present study, we propose an efficient algorithm as a general theory in terms of long term cost for counting and periodic strategies of continuous auditing as suggested by Pathak et al. study. Another novel feature of this paper is that we do not assume independence of validation time process. We have also offered analytical and computational results for practitioners and the professionals of database audit for practical implementation of our algorithms. The improved algorithms in the form of general theory contribute to accounting literature in general and continuous audit in particular in the form of general theory proposed for minimizing the cost of CA of databases. This study also makes significant contribution to the enterprise policy as cost minimization is an important component of policy studies in accounting area.
Abstract: This expansion in the usage of information technology (IT) in organizations affects the financial audit. This technology rich environment can significantly impact how auditors meet the audit objectives. In recognition of these developments, the United States Auditing Standards Board (ASB) issued Statement on Auditing Standards No. 94 (SAS 94), which amends SAS 55, giving guidance to auditors as to how IT impacts internal control and, in turn, affects how auditors obtain their understanding of internal control and assess control risk. SAS 94 is effective for the audits of financial statements for periods beginning on or after June 1, 2001. This article will describe the major changes resulting from SAS 94 and provide suggestions for implementation.
Abstract: Why do we need to continuously audit databases? The answer to this question depends on several factors, including the users and the applications that have accessed the data, the timing and the type of data modifications such as permissions or schema and so on. Many studies pertain to the technical feasibility of continuous auditing of databases, but do not consider the economic feasibility of such auditing. This paper helps fill this void in the literature. We examine certain strategies that have been suggested in the database auditing literature (see, e.g. Orman, 2001) with major and minor modifications. Orman studied the counting, periodic and hybrid auditing strategies with the objective of minimizing the number of errors introduced during database access. Unlike Orman whose focus is on assessing the number of errors entering into the system (technical feasibility), we focus on the long run operating cost of running database audit. We use results from regenerative stochastic processes to derive expressions for the long run average cost under the counting and periodic auditing strategies. Future directions for research are also proposed.
Abstract: The impact of networking technologies on information systems (IS) and its auditing is growing dramatically. This growth is changing the nature of information systems in the modern organizations, with special reference to the e-commerce. It would also be reasonable to infer that a corresponding effect is increasing on the information systems auditing function.
This paper primarily stresses the identification of specific constructs which can contain the potential variables/critical success factors in audit engagement planning that contribute to the success/failure of audit engagement in e-commerce-centric technological scenario and the same can be used to build a model for its empirical validity in future studies.
The objective of this paper is to devise a model, based on the variables turned potential critical success factors to successfully perform audit engagement planning for the current state-of-art e-commerce technologies. The available literature is focus-wise content analyzed to identify appropriate candidates for factors that appear to materially affect the success of e-commerce audit resource planning function.
Based on this model, an empirical examination, though not within the scope of this paper, is the next logical step in this direction to establish the validity of this model in the technologically complex e-commerce milieu.
