Investigating the impact of adopting big data and data analytics on enhancing audit quality

Ahmed Saad Abdelwahed, Ahmad Abd El Salam Abu-Musa, Hebatallah Abd El Salam Badawy and Hosam Moubarak

Journal of Financial Reporting and Accounting, 2024, vol. 23, issue 2, 472-495

Abstract: Purpose - This study aims to empirically investigate the impact of adopting big data and data analytics (BD&A) on audit quality (AQ). Design/methodology/approach - A questionnaire was distributed among audit practitioners working at audit firms in Egypt and 205 responses were collected. Partial least square structural equation modeling (PLS-SEM) was used to analyze and test research hypotheses. Findings - The results reveal that BD&A has a direct significant positive effect on the audit process (AP) and auditor competence (AC). However, an insignificant impact of BD&A is found on audit fees (AF). In addition, the results indicate that BD&A has significant positive direct and indirect impacts on AQ. Research limitations/implications - The results of this study will benefit several auditing stakeholders, such as audit firms, audit regulators, novice financial auditors and academic scholars. Originality/value - This research is one of the earliest to empirically address the role of BD&A in enhancing AQ. It incorporates AP, AC and AF as mediators into a single model to explain the impact of BD&A on AQ. Also, it attempts to provide empirical evidence from a developing country with a less-regulated audit environment.

Keywords: Audit process; Audit fees; Auditor competence; Audit quality; Big data and data analytics; Structural equation modeling (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrapp:jfra-12-2023-0724

DOI: 10.1108/JFRA-12-2023-0724

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