Which of the following statements about the use of data and transaction monitoring and analytics...

Data and transaction monitoring are strongest when performed continuously or on an ongoing, near-real-time basis. Continuous monitoring helps organizations identify red flags, anomalous transactions, and control breakdowns earlier than periodic manual reviews. This supports prevention because employees are less likely to commit fraud when they know transactions are being monitored, and it supports detection because suspicious activity can be flagged quickly. Continuous auditing and continuous monitoring are not simply manual processes; they usually involve automated analytics, exception reporting, and repeated testing. It is also inaccurate to say analytics are only useful for detection and investigation, because monitoring can deter misconduct and help management strengthen controls. Internal audit may use continuous auditing, but ongoing transaction monitoring can also be part of management’s fraud prevention program. Therefore, option B is correct.