Continuous Auditing and Monitoring Flashcards
6 cards from real ADA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Continuous Auditing and Monitoring flashcards as text
Which metric best measures the effectiveness of a continuous monitoring program over time?
Answer: The ratio of true positives to total alerts (precision rate)
Precision (true positives / total alerts) measures how many alerts represent real issues, indicating whether the program is generating actionable findings.
In continuous auditing, 'audit universe coverage' refers to:
Answer: The percentage of the population tested by continuous controls
Audit universe coverage measures what proportion of the auditable population is subject to automated continuous testing.
An auditor using continuous monitoring notices that the alert volume for duplicate payments has dropped to zero over three months. The auditor should FIRST:
Answer: Verify that the monitoring rule is still active and processing data correctly
Zero alerts may indicate the control is working, but could also mean the monitoring rule has failed or stopped receiving data — the rule itself must be validated.
Which of the following BEST describes a 'control self-assessment' integrated with continuous monitoring?
Answer: Management periodically evaluating the effectiveness of their own controls using monitoring data
Control self-assessment uses monitoring output to help management identify control gaps and evaluate effectiveness on an ongoing basis.
When implementing a continuous auditing program, which challenge is MOST commonly cited by organizations?
Answer: Data quality issues including incomplete, inconsistent, or inaccessible data
Poor data quality — missing fields, inconsistent formats, or restricted access — is the most frequently reported barrier to continuous auditing implementation.
A continuous auditing dashboard shows a sudden spike in journal entries posted after business hours. This pattern MOST suggests:
Answer: A potential fraud indicator requiring further investigation
After-hours journal entries are a classic fraud red flag identified in the ACFE Fraud Examiners Manual and warrant immediate audit follow-up.