In a high-volume, real-time system, the MOST effective technique by which to continuously monitor and analyze transaction processing is:

Embedded audit modules (EAMs), also known as continuous audit modules, are segments of code built into an application to continuously monitor and analyze transactions as they are processed. EAMs are specifically designed for high-volume, real-time systems because they can be programmed to select transactions based on predefined criteria of audit interest (e.g., high value, unusual patterns) and log them for subsequent review. This automated, exception-based approach is the most effective and efficient method for providing ongoing assurance over transaction processing in such an environment without degrading system performance.

A. integrated test facility (ITF).

ITF is a technique for testing system processing logic using dummy entities and test transactions within the live environment; it does not monitor actual production transactions.

B. parallel simulation.

This technique involves reprocessing historical production data in a separate, auditor-controlled program. It is a periodic, batch-oriented process, not a continuous, real-time monitoring tool.

C. transaction tagging.

Transaction tagging traces the path of specific, pre-selected transactions through the system. While useful, it is less comprehensive than EAMs, which can monitor the entire population of transactions and automatically flag any that meet audit criteria, making EAMs more effective for overall monitoring in a high-volume environment.

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1. ISACA

CISA Review Manual

27th Edition (2019). Domain 3: Information Systems Operations

Section 3.4.4 Continuous Auditing Techniques

p. 219. The manual states that Embedded Audit Modules are an "integral part of an application system... designed to identify and report transactions and other information that meet criteria of audit interest... The use of EAMs is a viable

cost-effective

continuous online monitoring approach... EAMs are particularly effective for transaction processing systems that process large volumes of data." This directly supports EAMs as the most effective choice for the scenario.

2. Vasarhelyi

M. A.

& Halper

F. B. (1991). The continuous audit of online systems. Auditing: A Journal of Practice & Theory

10(1)

110-125. This foundational academic paper describes the use of embedded modules as the primary mechanism for achieving a continuous audit of online systems

allowing for the timely detection of exceptions and errors as they occur.

3. Singleton

T. (2011). The Core of Continuous Auditing. ISACA Journal

Volume 6. This article explains that a key component of continuous auditing is the use of automated tools

such as embedded modules

to "continuously monitor systems and controls" and flag exceptions

which is essential for managing the large data volumes in modern systems.