The role of continuous monitoring of internal controls over financial reporting: A case study of an italian medium-sized company

Giuseppe Ianniello, Marco Mainardi, Fabrizio Rossi, Miklos Vasarhelyi

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This chapter aims to analyze the academic and professional utilization of continuous monitoring (CM) with subsequent tentative implementation in a medium-sized Italian company. The study focuses on the possible role of CM techniques in the system of internal controls over financial reporting. The primary research questions are as follows: (1) Are recent regulatory changes related to corporate governance creating opportunities to implement the CM approach? (2) What are the obstacles to applying the CM techniques in the Italian corporate governance model and the market for audits of accounts? and (3) What is unique about applying CM to small and medium-sized organization in the current IT environment? Using a case study method can provide initial answers to those questions and indicate possible firm-level benefits of CM (i.e., efficiency, better decision making, and cost savings) as well as benefits for stakeholders (i.e., more reliable financial reporting).

Original languageAmerican English
Title of host publicationLecture Notes in Information Systems and Organisation
PublisherSpringer Heidelberg
Pages121-137
Number of pages17
DOIs
StatePublished - Jan 1 2013

Publication series

NameLecture Notes in Information Systems and Organisation
Volume3

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Computer Science Applications
  • Information Systems and Management
  • Management of Technology and Innovation

Keywords

  • Accounting information system
  • Continuous auditing
  • Continuous monitoring
  • Corporate governance
  • Financial reporting
  • Internal control systems
  • SMEs

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