What is meant by continuous audit and to what type of business is audit specially applicable?

Continuous audit refers to the ongoing evaluation of an organization's financial information and internal controls, allowing auditors to assess risks and compliance in real time rather than relying solely on periodic audits. This approach is particularly applicable to businesses with high transaction volumes, such as financial institutions, retail companies, and large corporations, where timely detection of discrepancies and fraud is crucial for maintaining operational integrity and regulatory compliance. By utilizing technology and automated tools, continuous audits enhance transparency and improve decision-making processes.