Continuous auditing support using multi-agent systems

Abstract

The frequency of the review III a continuous auditing environment differentiates it from periodic traditional auditing. In continuous auditing the controls, transactions and financial reports are reviewed as soon as the data/evidence becomes available. The "continuous" aspect of continuous auditing and reporting refers to the near real-time capability for financial information to be checked and shared. There lacks support tools to aid in decision making for continuous auditing. The objective of this research was to develop a tool to assist in continuous auditing support. During a period of one year, a new continuous auditing support tool has been developed for use by Auditors. A distributed problem solving Multi Agent System was designed for this problem domain. The system is characterized by group of individual agents cooperating to identify audit exceptions and report in a timely manner. Several agents have been developed covering different systems review areas. The application is aimed at reducing the time lapse between an audit incident and the realization of the existence of the incident in continuous auditing. The application can be used to add value to auditors' reports since the findings are 'fresh' and relevant to senior management. The research also draws upon the lack of tools to support continuous auditing in transaction processing systems. The research paper explains the rationale behind the use of Multi Agent System technology to support Continuous Auditing. The tool was tested amongst auditors from various banks and their responses have been discussed in this report. The tool is currently being used at a local bank in Kenya.