Minimizing Cost of Continuous Audit: Counting and Time Dependent Strategies

Posted: 2 Nov 2004

See all articles by Jag Pathak PhD, CPA, CGA, CFF, CFE, CISA

Jag Pathak PhD, CPA, CGA, CFF, CFE, CISA

University of Windsor - Odette School of Business

Ben Chaouch

University of Windsor - Odette School of Business

Ram S. Sriram

Georgia State University

Multiple version iconThere are 3 versions of this paper

Abstract

Why do we need to continuously audit databases? The answer to this question depends on several factors, including the users and the applications that have accessed the data, the timing and the type of data modifications such as permissions or schema and so on. Many studies pertain to the technical feasibility of continuous auditing of databases, but do not consider the economic feasibility of such auditing. This paper helps fill this void in the literature. We examine certain strategies that have been suggested in the database auditing literature (see, e.g. Orman, 2001) with major and minor modifications. Orman studied the counting, periodic and hybrid auditing strategies with the objective of minimizing the number of errors introduced during database access. Unlike Orman whose focus is on assessing the number of errors entering into the system (technical feasibility), we focus on the long run operating cost of running database audit. We use results from regenerative stochastic processes to derive expressions for the long run average cost under the counting and periodic auditing strategies. Future directions for research are also proposed.

Keywords: Database Auditing, Renewal Theory, Cost of Continuous Audits, Information Assurance

JEL Classification: C61, M40, M41, M49

Suggested Citation

Pathak Phd, CPA, CGA, CFF, CFE, CISA, Jagdish and Chaouch, Ben and Sriram, Ram S., Minimizing Cost of Continuous Audit: Counting and Time Dependent Strategies. Available at SSRN: https://ssrn.com/abstract=611741

Jagdish Pathak Phd, CPA, CGA, CFF, CFE, CISA (Contact Author)

University of Windsor - Odette School of Business ( email )

401 Sunset
Windsor N9B 3P4, Ontario
Canada
519-253-3000 ext. 3131 (Phone)
519-973-7073 (Fax)

HOME PAGE: http://https://www.uwindsor.ca/business//483/jagdish-pathak-bio

Ben Chaouch

University of Windsor - Odette School of Business ( email )

401 Sunset
Windsor N9B 3P4, Ontario
Canada

Ram S. Sriram

Georgia State University ( email )

P.O. Box 4050
Atlanta, GA 30302-4050
United States
404-651-4464 (Phone)
404-651-1033 (Fax)

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