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Application of consumer search volume in auditing

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  • Li, Pei

Abstract

The application of nonfinancial information in auditing has allowed external auditors to effectively analyze corporate financial performance and assess fraud risk. This study examines whether the consumer search volume can be employed as a source of nonfinancial information in external audits to improve the accuracy of accounting estimates and help detect fraud in the financial statements. The consumer search volume, which is measured using the search volume index reported by Google Trend, captures the general level of contemporaneous consumer interest for corporate products or services. This study finds that the consumer search volume model generally outperforms the benchmark model when generating accounting estimates in analytical procedures. This study further examines and confirms that the consumer search volume is negatively associated with the accounting misstatements in the AAERs sample. Lastly, this study finds that the consumer search volume model generally outperforms the benchmark model in detecting misstatements.

Suggested Citation

  • Li, Pei, 2025. "Application of consumer search volume in auditing," International Journal of Accounting Information Systems, Elsevier, vol. 56(C).
    • Handle: RePEc:eee:ijoais:v:56:y:2025:i:c:s1467089525000120
    DOI: 10.1016/j.accinf.2025.100736
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