Compliance glossary
Definition

Continuous Monitoring

Ongoing automated monitoring of systems for security threats, misconfigurations, and policy violations, as an alternative to periodic testing.

What it means.

Continuous monitoring under the FTC Safeguards Rule (16 CFR 314.4(d)) is the practice of continuously evaluating the effectiveness of safeguards through automated tools and ongoing review. It is one of two ways to satisfy the testing requirement; the other is annual penetration testing plus semi-annual vulnerability scans. Continuous monitoring typically includes security information and event management (SIEM), endpoint detection and response (EDR), cloud security posture monitoring, and centralized log review.

Why it matters for CPA firms.

Firms with 5,000 or more consumer records must monitor or test. Most small CPA firms cannot run continuous monitoring themselves; their MSP or an outsourced security provider runs it. Even firms below the 5,000-record threshold benefit because most incidents originate from misconfigurations or stale accounts that monitoring catches before they become breaches. Document who runs your monitoring and what is logged.

Relevant regulations.

  • 16 CFR 314.4(d)
  • NIST SP 800-137

How Kompflow helps.

The Continuous Control Testing (Professional) module handles this for your firm, personalized to your software, team size, and state requirements.

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