Continuous Online Auditing - Benefits to Insurance Organizations

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Case Details:

Case Code : INS042
Case Length : 03 Pages
Period : 2003
Pub Date : 2003
Teaching Note : Available
Organization : Varied
Industry : Insurance
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Jeevan Raksha Insurance has been a successful company and had recently computerized most of its business processes. The company has widespread computer networks that have helped it improve its various operations such as processing claims and mailing policy documents to customers.

When the management came to know that a competitor had been benefited by Continuous Online Auditing (COA), it planned to implement COA in Jeevan Raksha. The top management asked departmental heads to convene a meeting and explain the benefits of implementing COA to its employees.

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Ravi Verma, Vice President, Marketing at Jeevan Raksha, convened a meeting to convey the message to all his people in the department and said, "We have always had traditional auditing systems in our company. Auditors come to us, check our reports and suggest improvement initiatives. However, the management has now decided to replace the traditional auditing process with Continuous Online Auditing (COA). COA is a type of auditing that produces audit results simultaneously with the occurrence of relevant events or shortly after the events have occurred. Online auditing will be carried out through a network between the company and the auditors. You can refer to the manual to know more about your responsibilities."...


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