Concurrent audit techniques definition
/What are Concurrent Audit Techniques?
Concurrent audit techniques involve the ongoing automated examination of business processes. This is achieved by embedding audit sub-routines into the application systems used by employees to process transactions. The system then flags unusual transactions for review by the audit staff. This approach is becoming more common, as larger businesses use highly integrated systems to run their operations.
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Advantages of Concurrent Audit Techniques
There are several advantages to setting up concurrent audit techniques within your business. They are as follows:
Full population review. This approach has the advantage of providing a complete review of all transactions, rather than the small sample sizes that auditors normally examine.
Immediate flagging. Concurrent audit techniques are especially useful when there is a heightened need to spot errors and irregularities immediately, so that auditors can investigate these issues at once and determine the underlying cause.