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The internal audit activity has requested that new vendor information be summarized once per week in a single report, and that all invoices each week for these vendors be automatically flagged in the invoice processing system. Which of the following computerized audit techniques is the internal audit activity most likely applying?
Correct Answer: A
The request for new vendor information to be summarized weekly and for invoices to be flagged automatically in the processing system indicates the use of continuous auditing. Continuous auditing involves ongoing, real-time monitoring of transactions and controls, which allows for the early detection of anomalies or issues. IIA References: * IIA Standard 2320: Analysis and Evaluation suggests that internal auditors should use appropriate technology to support their analysis. Continuous auditing tools are designed to monitor transactions continuously, enabling auditors to identify and address risks more proactively. * The Practice Guide on Continuous Auditing outlines the benefits of real-time monitoring and how it can be integrated into the audit process to enhance the timeliness and relevance of audit results.