The Three Pillars of Modern Transaction Monitoring

Transaction monitoring   – the cornerstone of the audit process It has been a way to infer to some level of probability that a control is effective. The control of greatest significance for the longest time were the accounts with their own magical double-entry controls. Confirming the validity of balances, allowed an auditor to express whether they represent a true and fair view of the financial affairs of the company. This in turn allows an investor to judge the amounts, timing, and certainty of future cash flows. It coincidentally has some capability to find fraud. Now we all realize that by the time an issue is reflected in the books of account, any issue is by definition historical with little chance to correct. We have controls in place within processes that are far upstream from the accounts. We also all realize that we have obligations to constituencies beyond investors: employees, customers, vendors, and that controls must be in place to protect their interests. Of cour...