Continuous auditing is a method of performing audit-related activities on a real-time or near real-time basis.
Continuous auditing is best suited for real-time transactions, such as online banking, e-commerce, or electronic funds transfer, that require immediate verification and assurance. Low-value transactions are not necessarily suitable for continuous auditing, as they may not pose significant risks or require frequent monitoring. Irregular transactions are not suitable for continuous auditing, as they may not occur frequently or consistently enough to justify the use of continuous auditing techniques. Manual transactions are not suitable for continuous auditing, as they may not be captured or processed by automated systems that enable continuous auditing. References:
* CISA Review Manual, 27th Edition, pages 307-3081
* CISA Review Questions, Answers & Explanations Database, Question ID: 253