Advantages of Performing Continuous Audits
A continuous audit (Also see How to Ensure Your Company’s Audit Process Goes Smoothly?) is an auditing process which is dependent on technology, and it will use the technology to analyse the account data and financial report continuously. In general, it is an alternative when compared to rather traditional auditing practices which involve periodic or annual reviews of business processes and the financial reports. Although all businesses may benefit from continuous auditing, it is particularly useful for public companies which need the investors’ trust and confidence in them.
Shorter Audit Cycles
The automated continuous audit causes the time needed for a typical audit cycle to be shorter. This enables the internal finance staff to put in more effort into dealing with other tasks. Besides, the external auditors from accounting service in Singapore will be able to complete more audit procedures more quickly, and this helps in increasing revenue and cutting down costs. Although the company may need to invest more in training and technology, it will receive a fruitful return because once they have set up the automated processes, they can start saving up resources and time.
Continuous auditing plays a role (Also see The Importance of Having Internal Audits) in eliminating inefficiencies and wastes that traditional auditing practices bring to the business. Some examples of these efficiencies include delays in audit work, correction of errors, as well as time taken for to auditors to finalise the reports. By implementing continuous audits, companies may set up automated procedures which enable them to perform almost real-time analysis of financial reports so that they can reduce wasted resources and time.
By implementing continuous auditing, the company will be able to produce customised reports for internal use as the management may set some requirements for the information included in the internal audit (Also see Internal Auditors and Their Roles in Consulting) report. For external audit firms, the continuous audit enables the auditors to give more helpful and company-specific reports to their customer. This increases the value of audit compared to the traditional audit practices which provide the companies with general audit reports.
Thoroughness and Flexibility
By implementing continuous audits (Also see What is Substantive Audit Approach?), the firms can conduct a thorough analysis of specific financial data as well as accounts as it makes it easier for the auditors to track all the account activities and transactions of the whole company. Thus, this allows the auditors to conduct detailed analysis on the practices the company is implementing in keeping their financial record. Besides, as the company can obtain flexible and customised reports, those reports are likely to help satisfy the requirements of the management. This is not so possible in the case of traditional periodic audits.