Developing a Framework to Address the Slow Implementation of Continuous Auditing by Internal Audit Functions in South Africa.

Currently, the internal audit profession is being challenged by developments in technology coupled with real-time approaches to doing business. These developments call for a more proactive audit approach, where transactions and internal controls are audited in real-time as they occur or in a very short time thereafter. Previous research confirmed that organisations have made significant progress in automating their key business processes through the implementation of Enterprise Resource Planning (ERP) Systems. These automated business processes produce real-time high volume of transactions, but internal audit processes providing assurance on these transactions and internal controls have remained manual and not automated. Previous literature has proposed that internal auditors should move towards a continuous auditing approach. This approach is viewed as a solution to enable internal auditors to provide real-time assurance to organisations, thereby delivering a value-added service. However, the implementation of continuous auditing by internal auditors remains relatively low. The main objective of this study is to investigate the factors contributing to the slow implementation of a continuous auditing approach by public sector Internal Audit Functions in South Africa. The ultimate goal will be to make recommendations towards developing a framework to guide and support the adequate and effective implementation of a continuous auditing approach by Internal Audit Functions in South Africa.