Continuous Auditing - Continuous Reporting

Continuous Reporting

Continuous reporting is the release of financial and non-financial information on a real-time or near real-time basis. The purpose of continuous reporting is to allow external parties access to information as underlying events take place, rather than waiting for end of period reports. The adoption of XBRL by companies makes the release of continuous reporting information more feasible. Continuous reporting also benefits users under Regulation Fair Disclosure. Continuous reporting is a point of constant debate. Some parties, including analysts and investors, are interested in knowing how a company is doing at a given point in time. They argue that near real-time information would provide them with the ability to take advantage of important business moves as they happen. However, opponents are skeptical of how the raw information can be useful and fear information overload, or that there would be too much irrelevant information out there. Additionally, some companies are fearful that continuously reported financial information would give away important strategic moves and undermine competitive advantage.