Is the information you receive from your systems accurate and reliable?
Due to the sheer volume and complexity of business transactions today, traditional testing of controls, performed on a retrospective and cyclical basis, often months after business activities have occurred, is no longer adequate. Stricter compliance standards demand a process that automatically performs control and risk assessments on a more frequent basis. This is especially true during times of economic uncertainly when the risks of fraud and error increase.
Continuous Monitoring can allow the business owner to regularly monitor the effectiveness of controls and stay on top of any failures.
What is Continuous Monitoring?
Continuous Monitoring is nothing new, as a concept it has been around for a number of years and means different things to different people. It can be summed up as; a process that facilitates an in-depth, on-going review and analysis of financial information on a real time basis. The underlying premise is that auditors are able to analyse systems continuously performing control and risk assessments, this does not have to be in real-time but at a frequency appropriate for the activity being monitored. For example, a duplicated payment control can be monitored weekly just before the weekly payment run, a segregation of duties control can be monitored hourly.
“Using traditional audit techniques it takes an average of 342 days to detect a fraud, at which point 89% of all proceeds are unrecoverable.”
KPMG Forensics Fraud Survey 2008
The Need for Continuous Monitoring
With increased regulatory requirements including Sarbanes Oxley section 404 reporting requirements, the Turnbull guidance and the new tax penalty regime from HM Revenue and Customs, all employees have some responsibility for internal controls. They, collectively, should have the necessary knowledge, skills, information, and authority to establish, operate and monitor the system of internal control. Traditional fixed point Monitoring does not provide sufficient information in a timely manner to enable employees to take this responsibility. Effective monitoring on a continuous basis is therefore an essential component of a sound system of internal control.
Continuous Monitoring Solution
CaseWare Monitor is our continuous monitoring software solution that provides security, reliability, flexibility and early detection to prevent fraud, enhance efficiency and improve compliance.
Most continuous monitoring solutions are application based and only support specific business processes, CaseWare Monitor can be applied to any business process, regardless of the underlying system or platform.
For more information on continuous monitoring please visit our website.