（2002）An Innovation Characteristics Approach to the Study of the Adoption of Continuous Assurance.docVIP

、 Presentation to the 5th Continuous Assurance Symposium, November 2002 Mary B. Curtis Department of Accounting University of North Texas October 30, 2002 Because this is a proposal for future research, please do not reference, quote or employ without the author’s permission. Your comments and suggestions are gratefully accepted.  An Innovation Characteristics Approach to the Study of the Adoption of Continuous Assurance Still in its infancy, very little continuous auditing is currently conducted. Possible explanations include difficulties in analyzing costs and benefits of this approach for those who might adopt CA, technological difficulties in implementing CA, lack of or unidentified demand for CA, or perceptions of excessive litigation risk if it doesn’t perform as expected or needed. I contend that most of these problems are due to a shortage of information about CA in the business world, and most importantly, the auditing profession. It is thought that the push to adopt continuous auditing could come from any of three different parties: The Securities and Exchange Commission could make CA a legal requirement in order to reduce audit lag, external users such as analysts and suppliers could require access to CA reports as a condition of doing business with the organization, or auditors could initiate the use of CA as a way to facilitate and enhance their fiduciary duties. It is my belief that, while CA is in its infancy, regulators and users are not likely to take the drastic step of demanding a particular audit approach. Instead, the initiative must come from auditors, both internal and external. Thus, in order for CA to move from infancy to common practice, it must first gain auditors’ acceptance. If auditors assert that CA is both possible and necessary, I believe the innovation will be successful. However, as with any technological advance, this acceptance will be a gradual process, initiated by a few who then demonstrate its benefits toward an eventua