An Exploratory Study into the Use of Audit Data Analytics on Audit Engagements

What is it about?

What is it about? Audit data analytics involve analysis and modeling of audit data to identify patterns, anomalies, and other useful information. It has been argued that this is a more efficient way to audit and offers increased potential for detecting material misstatements. This paper presents interview results of 5 major audit firm heads of professional audit practice conducted in 2018 about audit data analytics usage in Norway. It also presents results of detailed questionnaires and interviews 216 audit partners and managers about how audit data analytics were actually used on 109 audits. Findings are examined and discussed from an institutional theory perspective. Why is it important? This research is the first to document via details about actual use how far this revolution has actually progressed audit activities. Perspectives This article informs people about the current actual use of audit data analytics and impediments currently limiting future growth.

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