A continuous auditing web services model for XML-based accounting systems Uday S. Murthy a, * , S. Michael Groomer b,1 a School of Accountancy, University of South Florida, Tampa, FL 33620-5500, USA b Department of Accounting and Information Systems, Kelly School of Business, Indiana University, Bloomington, IN 47405-1701, USA Received 31 March 2003; received in revised form 30 November 2003; accepted 1 January 2004 Available online Abstract This article discusses how emerging information technology (IT) frameworks, such as extensible markup language (XML) and Web services, can be utilized to facilitate continuous auditing for the next generation of accounting systems. Relying on a number of components of Web services technology, this article presents a new model for continuously audit business processes, referred to as continuous auditing web service (CAWS). The CAWS mechanism would run as a ‘‘web service’’ in the audit firm’s computing environment and could be applied at a very granular level to provide assurance about specific business processes, at a very aggregate level for providing assurance relating to continuously reported earnings, or to provide continuous assurance (CA) about the operation of internal controls resident in the audit client’s environment. The primary user of CAWS, given the current audit model, is the audit firm itself. However, the proposed CAWS approach facilitates a new ‘‘pull’’ model of auditing as envisaged by Elliot [Account. Horiz. (1992) 61], where assurance consumers invoke the CAWS routines to obtain assurance on demand. In such a model, the auditor would offer restricted views provided by the CAWS routines on a fee basis to analysts, investors, financial institutions, and other parties interested in obtaining CA of business performance or other audit objects of interest. The frameworks and technologies that facilitate such a Web-service- based continuous auditing mechanism in an XML-enhanced world are briefly described. The article concludes with suggestions for future research. D 2004 Elsevier Inc. All rights reserved. Keywords: Continuous auditing; XML; Schema; Web services 1467-0895/$ - see front matter D 2004 Elsevier Inc. All rights reserved. doi:10.1016/j.accinf.2004.01.007 * Corresponding author. Tel.: +1-813-974-6523; fax: +1-813-974-6528. E-mail addresses: umurthy@coba.usf.edu (U.S. Murthy), groomer@indiana.edu (S.M. Groomer). 1 Tel.: +1-812-855-4026. International Journal of Accounting Information Systems 5 (2004) 139 – 163