IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxviy2023i4p131-159.html
   My bibliography  Save this article

Impact of Technological Advancements on Auditing of Financial Statements

Author

Listed:
  • Joshua Onome Imoniana
  • Daniel Carlos Nava Filho
  • Edgard Bruno Cornacchione
  • Luciane Reginato
  • Cristiane Benetti

Abstract

Purpose: This study sought to analyse the impacts of technological advances and innovations on auditing of financial statements. Design/Methodology/Approach: The research methodology is qualitative, drawing on interpretive and constructivist perspective. In doing so, answers the question of how the auditing has been impacted by information technology. It exercises content analysis on data gathered from corporate webpages of larger auditing firms predominantly the Big Four, Webinar organized by one of the Big four firms on October 2022, Data from 13th Ibracon Conference organized by Institute of Independent Auditors of Brazil in June 2023 and documents comprising the International Auditing Standards (ISA) and at the end categorizing analysis into templates. Findings: Show that the auditing has been technologically impacted by Computer Assisted Audit Techniques (CAAT) tools, Capacity building of the IT auditor, Artificial Intelligence in auditing, Deep learning in auditing and Emerging Technological impact of Continuous Auditing of Blockchain. Generally, auditing is technologically impacted in three manners, planning of an engagement, during the performance and during the reporting stages. Impact is also felt with the innovative technologies such as supervised-AI for data extraction and exception analysis. IoT, Drones monitoring with satellite imagery, Remote Sensing, Deep Learning and Robotic Process Automation. Practical Implications: Constituting the innovations being implemented at different paces by the auditing firms. However, ISA has not obliged the auditors to use this or that technology leaving them to their pace. To drive down innovation in auditing team, this study recommends that IS and IT expertise be incorporated in the financial auditing engagement team for appropriate development and not just treating them as expert service. Originality/Value: The study contributes to theories in as much as it provides relevant input/output for discussions of technological impacts on auditing to assist practitioners, regulators and policymakers.

Suggested Citation

  • Joshua Onome Imoniana & Daniel Carlos Nava Filho & Edgard Bruno Cornacchione & Luciane Reginato & Cristiane Benetti, 2023. "Impact of Technological Advancements on Auditing of Financial Statements," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 131-159.
    • Handle: RePEc:ers:journl:v:xxvi:y:2023:i:4:p:131-159
    as

    Download full text from publisher

    File URL: https://ersj.eu/journal/3277/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eleftherios Thalassinos, 2008. "Trends and Developments in the European Financial Sector," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2008(3), pages 44-61.
    2. Huang, Feiqi & Vasarhelyi, Miklos A., 2019. "Applying robotic process automation (RPA) in auditing: A framework," International Journal of Accounting Information Systems, Elsevier, vol. 35(C).
    3. Chen, Ruey-Shun & Sun, Chia-Ming & Helms, Marilyn M. & (Kenny) Jih, Wen-Jang, 2008. "Aligning information technology and business strategy with a dynamic capabilities perspective: A longitudinal study of a Taiwanese Semiconductor Company," International Journal of Information Management, Elsevier, vol. 28(5), pages 366-378.
    4. Ion Lungu & Teodora Vătuiu, 2007. "Computer Assisted Audit Techniques," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 7, pages 217-224.
    5. Gratiela Georgiana Noja & Eleftherios Thalassinos & Mirela Cristea & Irina Maria Grecu, 2021. "The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe," JRFM, MDPI, vol. 14(2), pages 1-20, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bavaresco, Rodrigo Simon & Nesi, Luan Carlos & Victória Barbosa, Jorge Luis & Antunes, Rodolfo Stoffel & da Rosa Righi, Rodrigo & da Costa, Cristiano André & Vanzin, Mariangela & Dornelles, Daniel & J, 2023. "Machine learning-based automation of accounting services: An exploratory case study," International Journal of Accounting Information Systems, Elsevier, vol. 49(C).
    2. Štemberger, Mojca Indihar & Manfreda, Anton & Kovačič, Andrej, 2011. "Achieving top management support with business knowledge and role of IT/IS personnel," International Journal of Information Management, Elsevier, vol. 31(5), pages 428-436.
    3. Bağış, Mehmet & Kryeziu, Liridon & Akbaba, Yılmaz & Ramadani, Veland & Karagüzel, Ensar Selman & Krasniqi, Besnik A., 2022. "The micro-foundations of a dynamic technological capability in the automotive industry," Technology in Society, Elsevier, vol. 70(C).
    4. Yasheng Chen & Zhuojun Wu & Hui Yan, 2022. "A Full Population Auditing Method Based on Machine Learning," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    5. Irena Jindrichovska & Erginbay Ugurlu & Eleftherios I. Thalassinos, 2020. "Exploring the Trend of Czech FDIs and their Effect to Institutional Environment," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 94-108.
    6. Cornel Oros, 2009. "Economic Governance in an Asymmetric Monetary Union: A Fiscal Policy Game Analysis," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 39-60.
    7. Walaa J. Alharthi, 2021. "Using Blockchain in WAQF, Wills and Inheritance Solutions in the Islamic System," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 101-116.
    8. N.G. Kuznetsov & I.I. Savvidy & N.D.Rodionova & E.S. Tsepilova, 2017. "Economic Cooperation of Russia and Greece during the Sanction Restrictions period and the Policies to Strengthen the Integration Process," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 22-35.
    9. Israel Luski & Mosi Rosenboim, 2009. "Optimal policy for FDI incentives: An auction theory approach," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 61-76.
    10. Katarzyna Wierzbicka, 2019. "The Impact of Venture Capital Funds on Innovative Activities: The Case of European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 518-532.
    11. Emilio Abad-Segura & Mariana-Daniela González-Zamar, 2020. "Research Analysis on Emerging Technologies in Corporate Accounting," Mathematics, MDPI, vol. 8(9), pages 1-29, September.
    12. Vasily I. Vlasov & Galina B. Vlasova & Svetlana V. Denisenko & Olga V. Litvinova, 2017. "The Basic Principles of the European State and Dynamics of the Political and Legal Development within the Russian Federation," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 225-233.
    13. Haochen Guo & Petr Polak, 2023. "Intelligent finance and change management implications," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    14. Othman Hel Al-Dhaimesh, 2020. "Ownership Structure as One of the Corporate Governance Tools and Banking Risks," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 60-69.
    15. Dutot, Vincent & Bergeron, François & Raymond, Louis, 2014. "Information management for the internationalization of SMEs: An exploratory study based on a strategic alignment perspective," International Journal of Information Management, Elsevier, vol. 34(5), pages 672-681.
    16. Kristian Pultz Schlosser & Aivars Spilbergs & Tatjana Volkova, 2023. "The Effect of Ambidextrous Strategic Leadership on Creating Shared Value," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 22-43.
    17. Ileana Tache & Cristina Neesham, 2009. "The Impact of the Europeanization Process on State-Industry Interaction in Romania," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 17-36.
    18. Alexandru Todea & Adrian Zoicas-Ienciu & Angela-Maria Filip, 2009. "Profitability of the Moving Average Strategy and the Episodic Dependencies: Empirical Evidence from European Stock," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 63-72.
    19. N.V. Petrasheva & S.I. Ulezko & A.V. Yakovlev & A.L. Klochkova, 2017. "Economic Crime and Problem of Complicity Understanding," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 208-214.
    20. Natalia Nikolaevna Natocheeva & Yury Alexandrovich Rovensky & Tatiana Viktorovna Belyanchikova & Yury Yuryevich Rusanov, 2017. "The Diversification of Banking Capital Sources and Cash Flow Granularity in Merger and Acquisition Transactions," European Research Studies Journal, European Research Studies Journal, vol. 0(4A), pages 501-514.

    More about this item

    Keywords

    IT Auditing; Computer Assisted Audit Techniques; CAAT; Artificial Intelligence; International Standards on Auditing; 5.0 Technology; ISA; Auditing Technology; Innovation.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxvi:y:2023:i:4:p:131-159. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.