Best Suited Methods for Continuous Auditing

D.

Continuous auditing is a method of auditing that involves the use of technology to perform audits on a real-time or near-real-time basis. It is a proactive approach to auditing that helps auditors identify potential issues before they become major problems.

Out of the given options, the best-suited transactions for continuous auditing are Real-time transactions (Option D).

Real-time transactions are those that occur instantly or near-instantly, and they are usually automated. They are processed by computer systems, which makes them easier to monitor and audit on a continuous basis. This is because real-time transactions provide auditors with up-to-date information that they can use to identify potential issues and risks, and take necessary actions to address them.

On the other hand, manual transactions (Option A) are typically slower and more error-prone than automated transactions. This makes them more difficult to audit on a continuous basis, as the data is not always available in real-time.

Irregular transactions (Option B) and low-value transactions (Option C) may be too infrequent or insignificant to justify the cost and effort of continuous auditing. Instead, these transactions may be better audited through periodic sampling or other less intensive methods.

Therefore, real-time transactions are the best-suited transactions for continuous auditing.