An investigation into the impact of continuous auditing on the external auditors of the four largest banks in South Africa

Abstract

With the increasing demands on technology and the increase in the number of transactions processed by organisations, users of financial information require information that is accurate, valid and reliable, but, most importantly, relevant – which means having the information available on a timelier basis than before. These requirements therefore necessitate a process of continuous monitoring of controls from a management perspective, and a process of continuous auditing on, as far as possible, a real-time basis from an external audit perspective.

This article focuses on continuous auditing from an external auditor perspective, with the four major commercial banks in South Africa selected to test the theories of continuous auditing identified in the literature. The research results showed that the external auditors of these banks use continuous auditing, but only to a limited extent. The article therefore concludes that, from a South African perspective, continuous auditing is not at this stage the preferred method of auditing.

Key Words:

• Continuous auditing
• real-time auditing
• Sarbanes-Oxley Act of 2002
• National Credit Act
• risk management