Strategic multiple criteria group decision-making model for continuous auditing systems

Abstract

The increasing attention to continuous auditing in practice has demonstrated its significance as an important field of scholarly inquiry. This research takes the two well-known continuous auditing systems, embedded audit module (EAM) and monitoring and control layer (MCL), to explore the key factors of successfully implementing a continuous auditing system. This study proposes a hybrid multiple criteria group decision-making (MCGDM) model, which employs decision-making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP) to determine the influential direction and criterion weight of continuous auditing system. We then use zero–one goal programming (ZOGP) to suggest the optimal allocation of the limited resources within the firm for the continuous auditing system. Finally, we present an empirical case to demonstrate the applicability of our proposed model. The proposed model guides business managers and executives to make proper judgment under dynamic market and technological environment.