How does continuous monitoring help deter fraud?

• A. It replaces the need for internal controls.
• B. It delays detection of anomalies.
• C. It focuses only on cash transactions at year-end.
• D. Ongoing analysis flags anomalies in real time, enabling quicker responses.

Answer: (D)

Continuous monitoring uses real-time data analysis to scrutinize transactions and user activity across processes. When something unusual appears, automated alerts surface immediately so investigators can act quickly. This rapid visibility is a powerful deterrent: potential fraudsters face a higher chance of detection and swift remediation, making fraudulent activity riskier and less attractive. It strengthens governance by enabling timely intervention and adjustment of controls based on what the data shows. It complements internal controls rather than replacing them and is not limited to cash or year-end activities; it spans multiple systems and timeframes. Ongoing analysis flags anomalies in real time, enabling quicker responses.