（2005）Continuous Auditing in the Shadow of SOX：Re-Engineering Interim Reporting and Assurance.pdfVIP

Continuous Auditing in the Shadow of SOX: Re-Engineering Interim Reporting and Assurance Efrim Boritz* Ontario Chartered Accountants Chair School of Accountancy University of Waterloo October 31, 2005 Work in Progress; Subject to Change *The author would like to acknowledge the extensive assistance provided by Chris Hicks of the Canadian Institute of Chartered Accountants and the funding provided by the Capital Markets Leadership Task Force. The views expressed in this paper are solely those of the author and may not represent the views of the members of the CMLTF. 1 of 21 - DRAFT Continuous Auditing in the Shadow of SOX: Re-Engineering Interim Reporting and Assurance A DISCUSSION PAPER October 31, 2005 J. Efrim Boritz Introduction This discussion paper is based on extensive discussions with capital markets stakeholders in Canada over the past 6 months. These discussions have included issuers/preparers, investors, auditors, board members and regulators. The purpose of these discussions was to surface issues that need to be addressed to reduce information risks borne by capital markets participants and thereby contribute to market efficiency and lower cost of capital. The key points raised in this discussion paper are: • There is a need to focus more attention on the quality of interim/continuous reporting and disclosure not just annual financial statements, because timely information is highly valued by capital market participants but the reliability of this in