A framework for implementation of continuous auditing in the public sector: case of Kenao
The use of technology in management of modem business processes has made the traditional paper-based approach of auditing around the computer inadequate. Similarly, the Kenya government financial system has undergone changes whereby manual systems have been replaced with automated information systems. The shift from manual to automated processes call for a change in the audit process as it renders traditional manual audit ineffective and time consuming. These changes require a paradigm shift where technology is used in the audit of the automated systems. Continuous auditing is therefore ideal in coping with these changes and would also ensure that auditors remain relevant in the changing world. The objective of the research was to develop a framework that can be used to implement continuous auditing by the Kenya National Audit Office (KENAO). KENAO is an independent office mandated to audit all Government Ministries, Local Authorities and State Corporations of Kenya. The existing continuous auditing frameworks were studied and the Integrated Continuous Auditing, Monitoring, and Assurance Conceptual Model was adapted for use by KENAO. Descriptive survey method was used in this study where instruments such as questionnaires were used in data collection. The framework was tested by the data analysis collected through questionnaires. In addition the Audit Command Language software (a Computer Aided Audit Tool) and a database system of a government Ministry were used to demonstrate how data can be obtained directly from a client system. The need for training in the skills necessary for continuous auditing as well as acquisition of IT resources and infrastructure found to be necessary in realizing continuous auditing. In conclusion, the study found out KENAO has the necessary requirements needed for continuous auditing to be implemented. The adapted framework would offer a good starting point in the implementation process. Keywords: Business systems automation, continuous auditing, Computer Aided Audit Tools (CAATs).
School of Computing and Informatics