Auditing less, safely

A quarterly audit cadence buys four days of certainty a year and eighty-six days of assumption per quarter. The assumption is usually fine. When it is not, the lender learns late, and lateness is what converts a manageable problem into a loss.

This paper makes the argument its title implies: continuous signals can cover the gap between physical audits, and that coverage is what earns a lower cadence. It sets out the three conditions that must hold first, the eight overlapping controls that provide the coverage, and a four step method for changing an audit calendar without weakening it.

It also looks at a real case where point-in-time verification inside one lender missed a pattern running across several, over months, and is explicit that no product would necessarily have caught it.