Implementation of Continuous Audit on the Brazilian Navy Payroll

Abstract

ABSTRACT The present research describes the continuous audit implementation process in the Brazilian Navy (BN) payroll system, which encompasses approximately 220,000 individuals. Continuous audit proved to be an excellent methodology for internal audit, improving audit quality and timeliness. Third-party databases from other governmental organizations were used to improve the audit work. Internal auditors were able to make agreements to access other government organization databases to verify Brazilian Navy payroll information. The case provides real situations, challenges, and forward-looking perspectives on the use of continuous audit tools and methods in governmental organizations. In recent years, continuous audit enabled internal auditors to increase the scope of the audit, bringing to light multiple events that had not been revealed by traditional audit techniques.