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Advancing Audit Practices through Technology: A Comprehensive Review of Continuous Auditing

Author

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  • Farras, Ashab
  • Ali, Amjad
  • Audi, Marc

Abstract

Continuous auditing has emerged as a transformative practice within the accounting and auditing professions, driven by rapid technological advancements and the growing demand for real-time financial assurance. Traditional audit practices rely on manual work, increasing the risk of human error and repetitive tasks. But Continuous auditing is powered by transformative tools like robotic process automation which eliminates these barriers by automating routine processes, reducing errors, and freeing employees from repetitive work. This paper examines the evolution of continuous auditing, its integration with advanced technologies such as artificial intelligence, robotic process automation, blockchain, and data analytics, and the broader implications for auditors, organizations, and academic institutions. Such advanced technology works together in continuous auditing to enhance accuracy, automate processes, and ensure data accuracy. Synergy in these advanced technologies enhanced audit efficiency. Through a comprehensive review of scholarly literature, the study underscores how continuous auditing facilitates real-time monitoring, improves audit quality, and reduces risks associated with traditional audit methods. Nevertheless, its adoption presents several challenges, including the management of information overload, the preservation of auditor independence, and the resolution of skill deficiencies among professionals. The 2024 BDO Audit Innovation Survey found that more than two-thirds (69%) of finance leaders said establishing data governance and internal data management is a barrier to a smooth audit experience. According to a 2019 ISACA survey, nearly two-thirds of organizations say the tech skills gap is impacting IT audits. The paper concludes by stressing the critical need to align auditing practices, professional training, and technological innovation to get the maximum benefits of continuous auditing in a digitally driven business environment.

Suggested Citation

  • Farras, Ashab & Ali, Amjad & Audi, Marc, 2025. "Advancing Audit Practices through Technology: A Comprehensive Review of Continuous Auditing," MPRA Paper 127319, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:127319
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    References listed on IDEAS

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    2. Arafat Hamdy & Ahmed Diab & Aref M. Eissa, 2025. "Digital Transformation and the Quality of Accounting Information Systems in the Public Sector: Evidence from Developing Countries," IJFS, MDPI, vol. 13(1), pages 1-22, February.
    3. Chan, David Y. & Vasarhelyi, Miklos A., 2011. "Innovation and practice of continuous auditing," International Journal of Accounting Information Systems, Elsevier, vol. 12(2), pages 152-160.
    4. Sutton, Steve G. & Holt, Matthew & Arnold, Vicky, 2016. "“The reports of my death are greatly exaggerated”—Artificial intelligence research in accounting," International Journal of Accounting Information Systems, Elsevier, vol. 22(C), pages 60-73.
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    6. repec:eme:maj000:02686900110385605 is not listed on IDEAS
    7. Zabihollah Rezaee & Rick Elam & Ahmad Sharbatoghlie, 2001. "Continuous auditing: the audit of the future," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 16(3), pages 150-158, April.
    8. Marc Audi & Amjad Ali & Razan Al-Masri, 2022. "Determinants of Advancement in Information Communication Technologies and its Prospect under the role of Aggregate and Disaggregate Globalization," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 69(2), pages 191-215, June.
    9. Carlin Dowling & Stewart a. Leech, 2014. "A Big 4 Firm's Use of Information Technology to Control the Audit Process: How an Audit Support System is Changing Auditor Behavior," Contemporary Accounting Research, John Wiley & Sons, vol. 31(1), pages 230-252, March.
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    Cited by:

    1. Ullah, Mati & Ali, Amjad & Jadoon, Atif Khan, 2025. "Quantum Computing and Blockchain Security: A Critical Assessment of Cryptographic Vulnerabilities and Post-Quantum Migration Strategies," MPRA Paper 127528, University Library of Munich, Germany.
    2. Karim, Danish & Ahmad, Khalil & Ali, Amjad, 2025. "Artificial Intelligence and the Evolution of Accounting: Transforming Roles, Skills, and Professional Practices," MPRA Paper 127531, University Library of Munich, Germany.
    3. Khalid, Hassam & Ahmad, Khalil & Ali, Amjad, 2025. "The Impact of Information Technology Audits on Audit Efficiency and Effectiveness: Evidence from UK Firms," MPRA Paper 127542, University Library of Munich, Germany.

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    JEL classification:

    • G3 - Financial Economics - - Corporate Finance and Governance

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