Integrating Analytical Procedures Into the Continuous Audit Environment

Authors

  • Eija Koskivaara Turku School of Economics and Business Administration

DOI:

https://doi.org/10.4301/s1807-17752006000300005

Abstract

The objective of this article is to show how to embed analytical procedures (AP) into the continuous audit environment. The audit environment is discussed in terms of audit phases, where the role of APs is to obtain evidence for auditors. The article addresses different characteristics of AP techniques. Furthermore, the article compares four different AP techniques to form expectations for the monthly sales values. Two of these techniques are simple quantitative ones, such as the previous year’s value and the mean of the previous years’ values. The advanced quantitative techniques are regression analysis and an artificial neural network (ANN)-based model. In a comparison of the prediction results, the regression analysis and ANN model turn out to be equally good. The development of these kinds of tools is crucial to the continuous audit environment, especially when most data transmission between companies and their stakeholders are moved into the electronic form.

Author Biography

Eija Koskivaara, Turku School of Economics and Business Administration

is currently an assistant professor in the Department of Management at the Turku School of Economics. She obtained her Master’s and PhD degrees in economics and business administration, majoring in Information Systems Science, from the Turku School of Economics and Business Administration. Endereço: Rehtorinpellonkatu 3 FIN-20520, Turku Finland. E-mail: eija.koskivaara@tse.fi

Downloads

Published

2007-01-10

How to Cite

Koskivaara, E. (2007). Integrating Analytical Procedures Into the Continuous Audit Environment. Journal of Information Systems and Technology Management, 3(3), p. 331–346. https://doi.org/10.4301/s1807-17752006000300005

Issue

Vol. 3 No. 3 (2006)

Section

Articles

License

Terms and Conditions The articles are author's responsibility. The publisher allows the author(s) to hold the copyright without restrictions and to retain publishing rights without restrictions. When submitting an article to JISTEM, authors are responsible for acknowledge and list any conflict of interest and financial support that may have influenced on the research results. Authors are required to sign an official copyright form. CC licensing You are free to: Share — copy and redistribute the material in any medium or format Adapt — remix, transform, and build upon the material for any purpose, even commercially. The licensor cannot revoke these freedoms as long as you follow the license terms. Under the following terms: Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits. Notices: You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation. No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material. The aim of the Directory of Open Access Journals is to increase the visibility and ease of use of open access scientific and scholarly journals thereby promoting their increased usage and impact. The articles have free availability on the public internet, permitting any users to read, download, copy, distribute, print, search, or link to the full texts of these articles Creative Commons License http://creativecommons.org/licenses/by/4.0/ Al papers are licensed under a Creative Commons Attribution 4.0 International License. Journal's policy of screening for plagiarism: Plagiarism is strictly forbidden, and by submitting the article for publication the authors agree that the publishers have the legal right to take appropriate action against the authors, if plagiarism or fabricated information is discovered.