An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

J Randel Kuhn Jr.
University of Central Florida

Steve G Sutton
University of Central Florida

Abstract: Given the recent rash of reported corporate frauds and malfeasance, continuous assurance has received additional scrutiny and adoption consideration as a viable enterprise risk management tool. The purpose of this study is to examine the key methods of fraud executed by WorldCom’s management, to demonstrate how principles of analytic monitoring could detect such fraudulent activity, to illustrate how the prescribed monitoring procedures could be integrated into an SAP enterprise system, and to explain how the complexity of interconnected legacy systems at WorldCom would have limited the completeness of any continuous monitoring system. The paper concludes with a discussion of the ongoing challenges facing continuous assurance and an overview of the implications of the research to both academics and practitioners.

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