An Investigation into the Application of Continuous Online Auditing in the U.K.

As online technology continues to have a significant influence on business activitiesand due to the vital role auditing plays in the financial reporting systems, auditors are graduallyadopting online technology in carrying out their tasks. While a number of studies have focusedon the phenomenon, none of the few that have emanated from the UK is empirical in nature. Thispaper reports on an empirical investigation into the possible benefits and drawbacks ofContinuous Online Auditing (COA) with a view to assessing its relevance to the future of bothinternal and external auditing. The findings indicate that the readiness of audit professionals andtheir clients to adopt COA is still a contentious issue. The paper concludes with some reflectionson what the expansion of COA might mean.