Case study questions

Q1. The protagonist of the case, S.C. Jain, talked about continuous auditing while discussing the Citibank financial regularity 2010. He also mentions “We know technology eases the process of continuous auditing”.

Define what is continuous auditing.

Identify some tools and techniques used in continuous auditing.

Discuss why irregularities and scams still happen despite the continuous auditing.

Q2. Discuss why is it important for auditors to spend time on self improvement and self updating on a continuous basis. How can auditors indulge in continuous improvement?

Q3. Discuss the challenges and misuse of IT implementation for knowledge and data management at organisations, in the light of the Citibank financial irregularity- 2010 (India). What can the auditors’ role to ensure policy lead and clean financial practices?

Q4. Information technology has initiated online trading and enabled globally connected stock markets. Foreign institutional investors (FII) are also making investments in stocks and securities in different countries. In light of this backdrop, along with the Harshad Mehta Scam-1992 (India), how can auditors keep themselves updated so that they could investigate the lapses in trading of various stocks and securities and protect investors’ interests?