Evaluating the Effectiveness of Continuous Monitoring Systems in Supporting Internal Audit Functions

Posted: Feb 21, 2022

• Isabella Ford
• Dahlia Sanchez
• Ethan Woods

Abstract

This research presents a comprehensive evaluation framework for assessing the effectiveness of continuous monitoring systems (CMS) in supporting internal audit functions within large organizations. Traditional audit methodologies have struggled to keep pace with the velocity and volume of modern business transactions, creating significant gaps in organizational risk management. Our study introduces a novel multi-dimensional assessment model that evaluates CMS effectiveness across four critical domains: risk coverage adequacy, anomaly detection precision, resource optimization impact, and strategic decision support capability. Through a mixed-methods approach combining quantitative analysis of system performance metrics with qualitative assessments from audit professionals across 47 organizations, we demonstrate that current CMS implementations achieve only 42% of their theoretical potential in supporting audit functions. The research reveals three previously undocumented systemic limitations: contextual blindness in automated controls testing, temporal misalignment between monitoring cycles and audit requirements, and cognitive overload in exception management interfaces. Our findings challenge conventional wisdom regarding CMS implementation priorities and provide evidence-based guidance for optimizing these systems to enhance audit quality, reduce compliance costs, and strengthen organizational governance. The study contributes to both academic knowledge and professional practice by establishing the first empirically validated framework for CMS effectiveness measurement and identifying specific improvement pathways that can increase audit support effectiveness by up to 68%.