（2007）Meeting Challenges and Expectations of Continuous Auditing in the Context of Independent Audits of Financial Statements.pdfVIP

International Journal of Auditing Int. J. Audit. 11: 133–146 (2007) Meeting Challenges and Expectations of Continuous Auditing in the Context of Independent Audits of Financial Statements Hui Du1 and Saeed Roohani2 1School of Business, University of Houston – Clear Lake, USA 2College of Business, Bryant University, USA This paper proposes a continuous auditing model that provides external auditors the opportunity to audit clients continuously or on a more frequent basis while reducing the possibility of compromising auditor independence. The model requires the auditor’s system to be separated from the auditee’s system so that the two systems do not interfere with each other. The auditor’s system must also communicate smoothly and effectively with the auditee’s system to continuously process data captured from that system. We show how the new technology using XML (eXtensible Markup Language) and CORBA (Common Object Request Broker Architecture) can help effectively connect the auditor’s system to the auditee’s system, thereby supporting smooth communication between the two independent systems. We also introduce the concept of continuous auditing cycle, which helps defi