Challenges For many organizations, there are a number of challenges to implementing a continuous auditing approach. The following are some common challenges with associated recommendations. Accessing complex, diverse system environment Few organizations have a completely homogeneous, seamless system environment. There is typically a mix of ERPs or multiple instances of one ERP, mainframe systems, off-the-shelf applications, and legacy systems—all of which may contain valuable data. Technology is available to access all of this data to gain a complete picture. Reluctance to expand the use of technology Technology may be viewed as a threat to those who perceive that automation might replace jobs. A benefit of continuous auditing is that it performs routine, repetitive tasks and provides the opportunity for the more interesting exploratory work that adds far more value to the organization. Overwhelming results When not properly implemented, continuous auditing can result in hundreds—even thousands—of false positives and wasted effort. Many companies that have experienced success with continuous auditing recommend that you start small. Select which area of the company poses the greatest risk and where its transactions and control systems are most important to the company for your initial foray into continuous auditing. Automate a small number of key initial tests, such as comparing your accounts payable vendor master file with the employee address file, to uncover potential policy violations or fraud. Moving forward, increase the tests and gradually expand into other business processes in stages. Training Training is essential for optimum results. A number of institutions, including ACL Services Ltd., offer training on computer-aided audit techniques including continuous auditing through automation. Training can be conducted either on-site or remotely, depending on the need of companies. Comparison to computer-aided auditing Continuous auditing is often confused with computer-aided auditing. The purpose and scope of the two techniques, however, are quite different. Computer-aided auditing employs end user technology including spreadsheet software, such as Microsoft Excel, to allow traditional auditors to run audit-specific analyses as they conduct the periodic audit. Continuous auditing, on the other hand, involves advanced analytical tools that automate a majority of the auditing plan. Where auditors manually extract data and run their own analyses in computer-aided auditing during the course of their traditional audit, high-powered servers automatically extract and analyze data at specified intervals as a part of continuous auditing. See also Center for Audit Quality (CAQ) References External links Rutgers Accounting Web 2009 IT Audit Benchmarking Study