IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v17y2024i12p578-d1550128.html
   My bibliography  Save this article

Auditors’ Perceptions of the Triggers and Obstacles of Continuous Auditing and Its Impact on Auditor Independence: Insights from Egypt

Author

Listed:
  • Laila Mohamed Alshawadfy Aladwey

    (Department of Accounting, Imam Mohammad Ibn Saud Islamic University (IMSIU), Riyadh 11432, Saudi Arabia
    Department of Accounting, Tanta University, Tanta 31521, Egypt)

  • Samar El Sayad

    (Department of Accounting, Prince Sultan University, Riyadh 12435, Saudi Arabia
    Department of Accounting, Tanta University, Tanta 31521, Egypt)

Abstract

Our study explores auditors’ perceptions of the triggers and hurdles of implementing continuous auditing (CA) in Egypt. It also explores auditors’ perceptions of the impact of CA on their independence. A survey of ninety-five auditors working in Big Four and non-Big Four firms was conducted to gather data. Descriptive statistics and the Friedman test were used to test our hypotheses. In addition, using the Mann–Whitney U test, we delve deeper into auditors’ perceptions to examine differences across audit firm types. The results reveal that addressing the increasing demand of stakeholders for real-time reporting and enhancing the quality of financial reporting significantly affect auditors’ perceptions of the triggers for adopting CA. In addition, the lack of standards related to CA and the high cost of implementation significantly affect auditors’ perceptions of the obstacles to implementing CA. The lack of clear guidelines regarding the work required in CA and auditing data that the auditors have previously corrected during the CA process is perceived by auditors as among the most significant factors that can impair their independence. The significance of this study stems from the fact that it is one of the few studies to explore continuous auditing practices in developing countries. To the best of our knowledge, this study is one of the first to investigate how CA affects auditor independence in developing countries.

Suggested Citation

  • Laila Mohamed Alshawadfy Aladwey & Samar El Sayad, 2024. "Auditors’ Perceptions of the Triggers and Obstacles of Continuous Auditing and Its Impact on Auditor Independence: Insights from Egypt," JRFM, MDPI, vol. 17(12), pages 1-19, December.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:12:p:578-:d:1550128
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/17/12/578/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/17/12/578/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zabihollah Rezaee & Rick Elam & Ahmad Sharbatoghlie, 2001. "Continuous auditing: the audit of the future," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 16(3), pages 150-158, April.
    2. Pathak, Jagdish & Chaouch, Ben & Sriram, Ram S., 2005. "Minimizing cost of continuous audit: Counting and time dependent strategies," Journal of Accounting and Public Policy, Elsevier, vol. 24(1), pages 61-75.
    3. Gonzalez, George C. & Sharma, Pratyush N. & Galletta, Dennis F., 2012. "The antecedents of the use of continuous auditing in the internal auditing context," International Journal of Accounting Information Systems, Elsevier, vol. 13(3), pages 248-262.
    4. Ahmed Anis, 2017. "Auditors’ and accounting educators’ perceptions of accounting education gaps and audit quality in Egypt," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 7(3), pages 337-351, August.
    5. Jung-Wha Lee & Minjung Kang & Yunsook Oh & Gyungmin Pyo, 2014. "Does continuous auditing enhance the quality of financial reporting? Korean evidence," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 21(3), pages 284-307, September.
    6. Chan, David Y. & Vasarhelyi, Miklos A., 2011. "Innovation and practice of continuous auditing," International Journal of Accounting Information Systems, Elsevier, vol. 12(2), pages 152-160.
    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. Slamet Soedarsono & Sri Mulyani & Hiro Tugiman & Didik Suhardi, 2019. "Information Quality and Management Support as Key Factors in the Applications of Continuous Auditing and Continuous Monitoring: An Empirical Study in the Government Sector of Indonesia," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 13(3), September.
    2. Rikhardsson, Pall & Dull, Richard, 2016. "An exploratory study of the adoption, application and impacts of continuous auditing technologies in small businesses," International Journal of Accounting Information Systems, Elsevier, vol. 20(C), pages 26-37.
    3. Gonzalez, George C. & Sharma, Pratyush N. & Galletta, Dennis F., 2012. "The antecedents of the use of continuous auditing in the internal auditing context," International Journal of Accounting Information Systems, Elsevier, vol. 13(3), pages 248-262.
    4. Sojung Lucia Kim & Thompson S.H. Teo & Anol Bhattacherjee & Kichan Nam, 0. "IS auditor characteristics, audit process variables, and IS audit satisfaction: An empirical study in South Korea," Information Systems Frontiers, Springer, vol. 0, pages 1-15.
    5. Tung-Hsien Wu & Shi-Ming Huang & Shaio Yan Huang & David C. Yen, 2017. "The effect of competencies, team problem-solving ability, and computer audit activity on internal audit performance," Information Systems Frontiers, Springer, vol. 19(5), pages 1133-1148, October.
    6. Ahmad Almagrashi & Abdulwahab Mujalli & Tehmina Khan & Osama Attia, 2023. "Factors determining internal auditors’ behavioral intention to use computer-assisted auditing techniques: an extension of the UTAUT model and an empirical study," Future Business Journal, Springer, vol. 9(1), pages 1-19, December.
    7. Kotb, Amr & Roberts, Clare & Sian, S., 2012. "E-business audit: Advisory jurisdiction or occupational invasion?," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 23(6), pages 468-482.
    8. Andrea Cardoni & Evgeniia Kiseleva & Francesco De Luca, 2020. "Continuous auditing and data mining for strategic risk control and anticorruption: Creating “fair” value in the digital age," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3072-3085, December.
    9. Jans, Mieke & Hosseinpour, Marzie, 2019. "How active learning and process mining can act as Continuous Auditing catalyst," International Journal of Accounting Information Systems, Elsevier, vol. 32(C), pages 44-58.
    10. Yoon, Kyunghee & Liu, Yue & Chiu, Tiffany & Vasarhelyi, Miklos A., 2021. "Design and evaluation of an advanced continuous data level auditing system: A three-layer structure," International Journal of Accounting Information Systems, Elsevier, vol. 42(C).
    11. Eid M. Alotaibi, 2023. "A Conceptual Model of Continuous Government Auditing Using Blockchain-Based Smart Contracts," International Journal of Business and Management, Canadian Center of Science and Education, vol. 17(11), pages 1-1, February.
    12. Abdalwali Lutfi & Hamza Alqudah, 2023. "The Influence of Technological Factors on the Computer-Assisted Audit Tools and Techniques Usage during COVID-19," Sustainability, MDPI, vol. 15(9), pages 1-22, May.
    13. Farkas, Maia & Murthy, Uday S., 2014. "Nonprofessional investors' perceptions of the incremental value of continuous auditing and continuous controls monitoring: An experimental investigation," International Journal of Accounting Information Systems, Elsevier, vol. 15(2), pages 102-121.
    14. Pei-Gi Shu & Tsung-Kang Chen & Wen-Jye Hung, 2015. "Audit duration quality and client credit risk," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 22(2), pages 137-162, June.
    15. Phu Dao-Le Flécher, 2022. "L’apport de la technologie de l'information à l'audit continu : quelques pistes de réflexion et d'action," Post-Print hal-03862107, HAL.
    16. Manal Ahdadou & Abdellah Aajly & Mohamed Tahrouch, 2024. "Unlocking the potential of augmented intelligence: a discussion on its role in boardroom decision-making," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(3), pages 433-446, September.
    17. Andrea Cardoni & Evgeniia Kiseleva & Rosa Lombardi, 2020. "A sustainable governance model to prevent corporate corruption: Integrating anticorruption practices, corporate strategy and business processes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1173-1185, March.
    18. Dafydd Mali & Hyoung‐joo Lim, 2021. "Do Relatively More Efficient Firms Demand Additional Audit Effort (Hours)?," Australian Accounting Review, CPA Australia, vol. 31(2), pages 108-127, June.
    19. Francis Aboagye‐Otchere & Cletus Agyenim‐Boateng & Abdulai Enusah & Theodora Ekua Aryee, 2021. "A Review of Big Data Research in Accounting," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 28(4), pages 268-283, October.
    20. Wang, Yuxin & Tian, Yifu & Teixeira, André & Hulstijn, Joris & Tan, Yao-Hua, 2016. "Fault detection and diagnosis for compliance monitoring in international supply chains," Other publications TiSEM 3a2a4fd2-b5be-4f65-ab7b-d, Tilburg University, School of Economics and Management.

    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:gam:jjrfmx:v:17:y:2024:i:12:p:578-:d:1550128. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.