Question

Give at least one other concurrent audit technique and how it could be applied specifically to the cycle your group was assigned to develop for the class project.

Answer 1

Concurrent audit techniques involve the ongoing automated examination of business processes. This is achieved by embedding audit sub-routines into the application systems used by employees to process transactions. The system then flags unusual transactions for review by the audit staff. This approach has the advantage of providing a complete review of all transactions, rather than the small sample sizes that auditors normally examine. Concurrent audit techniques are especially useful when there is a heightened need to spot errors and irregularities immediately. This approach is becoming more common, as larger businesses use highly integrated systems to run their operations.