Continuous auditing has the potential to reduce labor costs associated with auditing. It also can provide audit assurance closer to the occurrence of a transaction, which improves the reliability of frequent or real time financial reports. Using an Internet search engine, find an example of an organization’s usage of continuous auditing.
|
Losses |
||||
|
Probability That |
Low |
High |
Estimated |
|
|
Hazard |
Loss Will Occur |
Estimate |
Estimate |
Control Costs |
|
Equipment failure |
0.08 |
$50,000 |
$150,000 |
$2,000 |
|
Software failure |
0.1 |
4,000 |
18,000 |
1,400 |
|
Vandalism |
0.65 |
1,000 |
15,000 |
8,000 |
|
Embezzlement |
0.05 |
3,000 |
9,000 |
1,000 |
|
Brownout |
0.4 |
850 |
2,000 |
250 |
|
Power surge |
0.4 |
850 |
2,000 |
300 |
|
Flood |
0.15 |
250,000 |
500,000 |
2,500 |
|
Fire |
0.1 |
150,000 |
300,000 |
4,000 |