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Initial Implementation of Data Analytics and Audit Process Management

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  • Kanyarat (Lek) Sanoran

    (Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand)

  • Jomsurang Ruangprapun

    (Chulalongkorn Business School, Chulalongkorn University, Bangkok 10330, Thailand)

Abstract

To answer the call for more evidence on the adoption and effectiveness of Big Data Analytics in auditing, this study investigates auditors’ use of data analytic tools in audit-process management, including audit planning, testing, and conclusions. The analysis, which is performed as a qualitative study, is based on twenty-eight semi-structured interviews with Big 4 and non-Big 4 audit professionals in Thailand to gain insights into their experience implementing audit data analytic tools in the initial stage. Findings suggest that auditors primarily use data analytic tools in audit planning and substantive testing. Nevertheless, auditors do not perceive a need to use these tools to test internal controls and conclude audit opinions. In addition, we find that auditors tend to apply audit data analytic tools for anomaly detection and testing management assertions. Overall, auditors perceive the benefits of audit data analytic tools in improving their audit process management. Findings present practical implications for audit firms and audit professionals, including how to initially implement data analytic tools effectively in auditing and as guidelines for regulators on how to develop auditing standards that govern the use of Big Data and data analytic tools. We note some limitations in this study, such as the generalizability of the results, auditors’ personal biases, and the different tools and techniques used by each audit firm.

Suggested Citation

  • Kanyarat (Lek) Sanoran & Jomsurang Ruangprapun, 2023. "Initial Implementation of Data Analytics and Audit Process Management," Sustainability, MDPI, vol. 15(3), pages 1-14, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:3:p:1766-:d:1038598
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    References listed on IDEAS

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    Cited by:

    1. Ahmed S. Abdelwahed & Ahmad A. Abu-Musa & Hebatallah A. Badawy & Hosam Moubarak, 2025. "Unleashing the beast: the impact of big data and data analytics on the auditing profession—Evidence from a developing country," Future Business Journal, Springer, vol. 11(1), pages 1-18, December.

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