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

Fengyi Lin
Chihlee Institute of Technology

Deron Liang
National Taiwan Ocean University

Soushan Wu
Chang Gung University

Abstract: Recent audit failures and corporate scandals in the U.S. have resulted in widespread calls to refresh the continuous monitoring process. This study aims to examine the existing interceptor function under current EDP systems to support the continuous monitoring by analyzing a recent Taiwan financial scandal. We present a continuous monitoring framework to be incorporated into conglomerates accounting information systems with XBRL, Web Services and Interceptor technology for facilitating electronic exchange of business documents among interested parties. We also make a comparative study of how this Interceptor can be implemented in different layers to strength the tertiary monitoring. For concept verification, we combined continuous monitoring framework with Interceptor to analyze a existing Taiwan fraudulent company (Procomp) so as to have an insight into the strategy decision process of the case company.

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