Empirical research frameworks in a changing world: The case of audit data analytics

Klaus Ruhnke

Journal of International Accounting, Auditing and Taxation, 2023, vol. 51, issue C

Abstract: Advances in data analytics is fundamentally changing the field of auditing. The primary objective of this paper is to develop a holistic, multidimensional framework to better understand the dynamics of the diffusion of audit data analytics (ADA). The framework we developed covers categories related to the diffusion of ADA (the technology, the actors using it, and the external rules that regulate it) and the actors reproducing the rules and technologies (focusing on the audit and cognitive processes). We analyze the key findings from 40 empirical studies within and across the interrelated categories of the framework. The findings emphasize that a better understanding of auditors’ judgment and decision making (cognitive processes) is fundamental for a study of the diffusion of ADA. Primary drivers of fundamental changes include audit quality, audit efficiency, and the expectation gap. Our results suggest that ADA competencies should be a professional priority. In addition, conceptual issues (the audit risk model, audit evidence, and audit assertions) and materiality considerations need to be resolved. A solution for these problems is a prerequisite for in-depth changes to audit standards, which in turn will also open the door to the diffusion of ADA.

Keywords: Audit; Audit evidence; Big data; Data analytics; Empirical research, framework (search for similar items in EconPapers)
JEL-codes: D91 M42 O30 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jiaata:v:51:y:2023:i:c:s1061951823000241

DOI: 10.1016/j.intaccaudtax.2023.100545

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