Continuous Auditing: Potential for Internal Auditors

The process of continuous auditing can help you and your organization increase investor confidence, respond to Sarbanes-Oxley, work with complex IT systems, and improve corporate governance. But what is this emerging audit practice, and is it right for your organization?

This comprehensive research report will help you:
- Understand the value of continuous auditing.
- Evaluate popular tools and techniques.
- Utilize implementation guidance and strategies.
- Assess relevant technologies.
- Find out how continuous auditing can benefit your organization's risk management process and system of internal control.

J. Donald Warren, Jr., CPA, is Director, Center for Continuous Auditing at Texas A&M University. He retired from PricewaterhouseCoopers LLP after a distinguished 31-year career. At Coopers & Lybrand L.L.P. (merged with Price Waterhouse LLP in July 1998), Don served in several capacities, including Director of BA (Business Assurance) Product Development and Technology Services, where his group identified new products and services. Prior to 1997, Don was Director of Computer Assurance Services, responsible for the United States IT audit practice, in charge of the firm’s NotesÓ-based audit workstation, CLASS, and a member of the International Computer Assurance Committee.

Don served as a National Accounting, Auditing & SEC Consulting Partner, responsible for domestic SEC issues and independence, and prior to 1988, he was a general practice partner. From 1973-1975, he was Technical Advisor to a member of the Financial Accounting Standards Board. Prior to joining Coopers & Lybrand in 1970, he served as audit manager with the U.S. General Accounting Office in Washington, DC, and was responsible for conducting operational audits of federal agencies.

Don received a BBA in accounting from Lamar University, an MBA from George Washington University, and currently is completing a Ph.D. at Texas A&M University. He is a member of the American Institute of Certified Public Accountants and the Institute of Management Accountants, and has served on several AICPA committees. He also served as chair of the IMA Information Technology Committee. Don has published articles and is a co-author of the 3rd Edition of the Handbook of IT Auditing.

Xenia Ley Parker, CISA, CFSA, Principal, XLP Associates, focuses on internal IT auditing and risk assessment, research and implementation of audit approaches and risk models at a variety of clients. Xenia is the author of Miller’s IT Audits, published March 2003 by Aspen Publishers; a Senior Consultant for MIS Training Institute, responsible for training internal auditors in technology; and is the lead instructor for their Making the Transition from IT to IT Audit seminar.

Xenia was with Ernst & Young LLP Information Systems Audit and Assurance Services from 1997-2000, recruited to direct communications for the national office. She developed information security, e-commerce, and business continuity planning service delivery programs and training. In the New York office, she was responsible for IT audit for financial services and all nonprofit clients, served as client Internal IT Audit Director, and was Web master of the NY ISAAS intranet. On E&Y’s internal audit team in Lyndhurst, NJ, she reviewed their internal IT infrastructure, financial applications under development, and large-scale Web hosting methodologies.

Xenia was Director, Internal Audit Technology Services at Coopers & Lybrand LLP. She worked with client internal audit executives to develop an integrated strategy and infrastructure for technology-based audits, performed quality reviews of SAP R/3 implementations, and developed COSO and risk-based internal audit approaches. As International Director, System Quality Services, Information Technology Audit Services (ITAS), she was responsible for the global implementation of C&L’s system quality review methodology SQA2000. Until 1993, she was National Director, Technical Communications, Computer Audit Assistance Group (CAAG), managing a 22-person department responsible for U.S. firm IT audit-related support materials, software manuals, marketing collateral, newsletters, and training. She also managed C&L’s System Development Steering Committee of top client audit executives.