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The marketing on Big 4 websites of Big Data Analytics in the external audit: Evidence and consequences

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  • Alles, Michael
  • Gray, Glen L.

Abstract

Leveraging ubiquitous digital data, advanced hardware, and sophisticated software, Big Data Analytics (BDA) enables unprecedented in-depth examination of business processes. This paper investigates how the Big 4 accounting firms promote their use of technology-enabled analytics in auditing practices on their official websites. We find that all the Big 4 market their audit analytics as offering operational insights that add value for clients. Historically, auditors have sought to share valuable perspectives gained during engagements beyond verifying that clients are in compliance with accounting principles. However, providing these value-adding insights is transitioning from a supplementary benefit to an essential selling point of audits. This behavior likely stems from BDA technology’s inherent duality–facilitating regulatory compliance and business intelligence. Incorporating artificial intelligence into audit firms’ technological arsenal will further enhance their ability to deliver client-valued insights. These developments necessitate further research into how the BDA application impacts auditor independence.

Suggested Citation

  • Alles, Michael & Gray, Glen L., 2024. "The marketing on Big 4 websites of Big Data Analytics in the external audit: Evidence and consequences," International Journal of Accounting Information Systems, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:ijoais:v:54:y:2024:i:c:s1467089524000307
    DOI: 10.1016/j.accinf.2024.100697
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    References listed on IDEAS

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    1. Alles, Michael G. & Kogan, Alexander & Vasarhelyi, Miklos A., 2008. "Exploiting comparative advantage: A paradigm for value added research in accounting information systems," International Journal of Accounting Information Systems, Elsevier, vol. 9(4), pages 202-215.
    2. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    3. Picard, Claire-France, 2016. "The marketization of accountancy," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 34(C), pages 79-97.
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