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Empirical research frameworks in a changing world: The case of audit data analytics

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  • Ruhnke, Klaus

Abstract

Advances in data analytics is fundamentally changing the field of auditing. The primary objective of this paper is to develop a holistic, multidimensional framework to better understand the dynamics of the diffusion of audit data analytics (ADA). The framework we developed covers categories related to the diffusion of ADA (the technology, the actors using it, and the external rules that regulate it) and the actors reproducing the rules and technologies (focusing on the audit and cognitive processes). We analyze the key findings from 40 empirical studies within and across the interrelated categories of the framework. The findings emphasize that a better understanding of auditors’ judgment and decision making (cognitive processes) is fundamental for a study of the diffusion of ADA. Primary drivers of fundamental changes include audit quality, audit efficiency, and the expectation gap. Our results suggest that ADA competencies should be a professional priority. In addition, conceptual issues (the audit risk model, audit evidence, and audit assertions) and materiality considerations need to be resolved. A solution for these problems is a prerequisite for in-depth changes to audit standards, which in turn will also open the door to the diffusion of ADA.

Suggested Citation

  • Ruhnke, Klaus, 2023. "Empirical research frameworks in a changing world: The case of audit data analytics," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    • Handle: RePEc:eee:jiaata:v:51:y:2023:i:c:s1061951823000241
    DOI: 10.1016/j.intaccaudtax.2023.100545
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    More about this item

    Keywords

    Audit; Audit evidence; Big data; Data analytics; Empirical research; framework;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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