Continuous Bank Audit Using Internet of Things

The Internet of Things (IoT) is a network of interconnected devices such as computers, wireless sensors, cameras, smart mobiles, smart fire alarms, smart door locks, smart security systems, etc. The IOT capability of enabling capture of real-time data for assessment, interpretation and analysis makes it suitable for continuous auditing of banks. Internal audit of banks has to ensure that there are no errors or frauds including cyber frauds. Statutory audit as part of regulatory oversight has to ensure that the financial statements are true and fair while reporting to multiple stakeholders. IOT makes it possible to collect, collate, and analyze real time data from multiple devices used by the customers. This makes it crucial for real time as well as post facto monitoring, which is a major responsibility of audit as a part of the governance function and regulatory validation and oversight. The current research lacks a systematic approach towards application of IOT to bank audit. This study proposes a conceptual framework using IOT for the continuous ubiquitous audit which will transform bank audits integrating internal and external audit.