Audit Data Analytics Use: An Exploratory Analysis

2016 ◽  
Author(s):  
Clark Hampton ◽  
Theophanis C. Stratopoulos
Keyword(s):  
Data Analytics ◽  
Exploratory Analysis ◽  
Audit Data

The Effects of the Internal Control Opinion and Use of Audit Data Analytics on Perceptions of Audit Quality, Assurance, and Auditor Negligence

2021 ◽  
Author(s):  
Dereck Barr-Pulliam ◽  
Helen L Brown-Liburd ◽  
Kerri-Ann Sanderson
Keyword(s):  
Quality Assurance ◽  
Internal Control ◽  
Data Analytics ◽  
Audit Quality ◽  
Financial Statements ◽  
Entire Population ◽  
Statistical Sampling ◽  
Testing Methods ◽  
Audit Failure ◽  
Audit Data

Audit data analytics (ADAs) allow auditors to analyze the entire population of transactions which has measurable benefits for audit quality. However, auditors caution that the level of assurance on the financial statements is not incrementally increased. We examine whether the testing methodology and the type of ICFR opinion issued affect jurors' perceptions of auditor negligence. We predict and find that when auditors issue an unqualified ICFR opinion, jurors make higher negligence assessments when auditors employ statistical sampling than when they employ ADAs. Further, when auditors issue an adverse ICFR opinion, jurors attribute less blame to auditors and more blame to the investor for an audit failure. Additionally, jurors perceive the use of ADAs as an indicator of higher audit quality and are less likely to find auditors negligent. However, jurors do not perceive a difference in the level of assurance provided when auditors use ADAs versus sampling testing methods.

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

2019 ◽  
Author(s):  
Aasmund Eilifsen ◽  
Finn Kinserdal ◽  
William F. Messier Jr ◽  
Thomas McKee
Keyword(s):  
Exploratory Study ◽  
Data Analytics ◽  
Audit Data

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

2020 ◽  
Vol 34 (4) ◽  
pp. 75-103 ◽  
Author(s):  
Aasmund Eilifsen ◽  
Finn Kinserdal ◽  
William F. Messier ◽  
Thomas E. McKee
Keyword(s):  
Institutional Theory ◽  
Professional Practice ◽  
Exploratory Study ◽  
Data Analytics ◽  
Data Availability ◽  
Public Accounting ◽  
Accounting Firms ◽  
It Systems ◽  
Audit Data ◽  
Public Accounting Firms

SYNOPSIS This study explores the use of audit data analytics (ADA) in current audit practice. First, we interviewed the heads of professional practice of five international public accounting firms in Norway. We find that they differ in strategies on how to implement ADA and the heads report significant uncertainty about the supervisory inspection authorities' response to the use of ADA. Second, we administered a questionnaire to 216 engagement partners and managers about their perceptions of ADA and their actual ADA use on 109 audit engagements. Overall, the attitudes toward ADA usefulness are positive. Analysis of the audit engagements suggests use of ADA is relatively limited and use of more “advanced” ADA is rare. More ADA are used for clients with integrated ERP/IT systems and for newly tendered audit engagements. We also provide details of ADA use on each phase of the audit. We discuss our findings from an institutional theory perspective. Data Availability: The data used in this study are confidential by agreement with the participants.

A Picture is Worth a Thousand Words: Using Interactive Data Visualization to Assess Fraud Risk

2021 ◽  
Author(s):  
Johan L Perols ◽  
Ann C Dzuranin
Keyword(s):  
Data Visualization ◽  
Data Analytics ◽  
Data File ◽  
Initial Evaluation ◽  
Accounting Firms ◽  
Fraud Risk ◽  
Audit Data ◽  
Interactive Data ◽  
Financial Transactions

Accounting firms are making significant investments in audit data analytics technologies to modernize their audit services and the audit profession is believed to now be on the verge of a transformation (BDO 2016; Deloitte 2016; EY 2015; Forbes Insights 2015; PwC 2015). In particular, the firms are emphasizing newer technologies such as interactive data visualization (BDO 2016; Deloitte 2016; PwC 2016) and they are increasingly expecting students to have data analytics skills (Forbes Insights 2015; PwC 2015). In this case you take on the role of Bryan, an audit senior assigned to Acme. Brian has been tasked with using interactive data visualization to gain an understanding of Acme’s sales and perform an initial evaluation of two fraud risks identified during a fraud brainstorming session.  Brian has been given a data file with over 250,000 financial transactions and five master tables that he is supposed to analyze using interactive data visualization.

A Framework for Auditor Data Literacy: A Normative Position

2020 ◽  
Author(s):  
Deniz Appelbaum ◽  
D. Scott Showalter ◽  
Ting (Sophia) Sun ◽  
Miklos A. Vasarhelyi
Keyword(s):  
Data Analytics ◽  
Business Environment ◽  
Current Data ◽  
Data Driven ◽  
Accounting Firms ◽  
Knowledge And Skills ◽  
Audit Data ◽  
Cpa Exam ◽  
Audit Standards ◽  
A Current

Due to the nature of the current data--driven business environment, many accounting firms are starting to re-align their audit processes to incorporate technology and Audit Data Analytics (ADA), as the traditional audit procedures would seem to not be sufficiently effective and efficient to meet evolving market expectations (Byrnes et al., 2018; Forbes 2017, 2018). This paper provides commentary on how data analytics knowledge should be required of the profession, in addition to that of traditional accounting. We discuss the current information-centric business environment, the availability of Big Data, and the existing data analytics efforts made by businesses, with its subsequent impact. Regarding the complementarity of available data analytics tools and data analytics knowledge, it proposes a guideline for the content and levels of ADA knowledge and skills that should be required of auditors serving in different roles. Finally, suggestions are provided to facilitate the adoption of ADA and provide solutions to challenges in the CPA exam, audit standards, and education. In this data-centric business environment, acquiring the knowledge and skills of data analysis should be a current professional priority.

Eight Issues on Audit Data Analytics We Would Like Researched

2014 ◽  
Vol 29 (1) ◽  
pp. 155-162 ◽  
Author(s):  
Tawei Wang ◽  
Robert Cuthbertson
Keyword(s):  
Data Analytics ◽  
Internal Auditors ◽  
Academic Literature ◽  
External Data ◽  
Use Of Data ◽  
Audit Data ◽  
Academic Researchers ◽  
Sample Versus

ABSTRACT Data analytics has been emphasized as an effective tool in audit engagements. However, both our understanding and the use of data analytics in audit engagements are limited. The objective of this paper is to draw academic researchers' attentions to the issues of data analytics identified by an experienced practitioner in the field. These issues range from standards and the framework of data analytics to the use of data analytics in different phases of audit engagements and the corresponding consequences. The use of external data, sample versus population, and reliance on the work of internal auditors are also discussed. By addressing these issues, academic researchers can not only provide solutions to the field but also contribute to the knowledge body of academic literature.

scholarly journals Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on Proposed Statement on Auditing Standards (SAS), Audit Evidence

2019 ◽  
Vol 14 (1) ◽  
pp. C1-C9
Author(s):  
Veena Looknanan Brown ◽  
Denise Dickins ◽  
Dana R. Hermanson ◽  
Julia L. Higgs ◽  
J. Gregory Jenkins ◽  
...  
Keyword(s):  
Data Analytics ◽  
Information Sources ◽  
Data Availability ◽  
External Information ◽  
Certified Public Accountants ◽  
American Institute ◽  
Professional Skepticism ◽  
Audit Data ◽  
Audit Evidence ◽  
Auditing Standards

SUMMARY On June 20, 2019, the American Institute of Certified Public Accountants Auditing Standards Board (the Board or ASB) issued a request for comment on its Exposure Draft, Proposed Statement on Auditing Standards, Audit Evidence. Enhancements in the proposed SAS include the use of emerging technologies by both preparers and auditors, audit data analytics, the application of professional skepticism, and the expanding use of external information sources as audit evidence. The comment period ended on September 18, 2019. This commentary summarizes the participating committee members' views on selected questions posed by the ASB. Questions not addressed by the committee are listed at the end of this manuscript. Data Availability: Proposed Statement on Auditing Standards (SAS), Audit Evidence, including questions for respondents, is available at: https://www.aicpa.org/content/dam/aicpa/research/exposuredrafts/accountingandauditing/downloadabledocuments/20190620a/20190620a-ed-sas-audit-evidence.pdf

Guide to Audit Data Analytics

2018 ◽  
Author(s):  
AICPA
Keyword(s):  
Data Analytics ◽  
Audit Data
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