An Examination of Audit Information Technology Use and Perceived Importance

Abstract

Information technology (IT) use can directly impact audit judgment and ultimately audit effectiveness and efficiency. Although IT has significantly changed the audit process, few studies have examined the perceived importance of IT use across a diverse group of audit firms. Our descriptive study explores audit IT use and its perceived importance across several audit applications. To address regulator concerns about barriers to entry in public accounting and to advance auditing research, we examine whether audit IT use and perceived importance of IT varies by firm size. A field-based questionnaire was used to collect data from 181 auditors representing Big 4, national, regional, and local firms. Our results indicate that auditors extensively use a variety of audit applications including analytical procedures, audit report writing, electronic work papers, Internet search tools, and sampling. Auditors perceive several applications as important (e.g., fraud review), but use them infrequently. In addition, IT specialists use is infrequent, even by auditors who examine clients with complex IT. Finally, findings suggest that audit IT use and perceived importance vary by firm size. These results describe audit IT use, but do not allow us to infer causality.

Examining the Potential Benefits of Internal Control Monitoring Technology

“…Although prior studies used field-based approaches to describe the external auditors' perceptions about the use of audit-related IT (Fischer 1996;Janvrin et al 2008), to our knowledge, ours is one of the first study to provide archival evidence regarding external audit cost outcomes from the client's implementation of assurance-related technology.…”

“…Some research in this area focuses on the use of IT by auditors and the effect of IT on auditors' judgments (e.g., Messier 1995;O'Donnell and David 2000;Brazel et al 2004;O'Donnell and Schultz 2003;Bible et al 2005;Bedard et al 2007;Dowling and Leech, 2007;Dowling 2009). Other research involves field-based surveys that describe assurance providers' perceptions about the importance and benefits of using audit-related IT (e.g., Fischer 1996;Behn et al 2006;Janvrin et al 2008). There is relatively little archival research in auditing regarding the benefits of assurance-related IT.…”

Technological, Organisational and Environmental Aspects of Audit Technology Acceptance

“…Despite the wide usage of audit technology in internal auditing (Mahzan and Lymer, 2009) and the importance of audit technology (Ismail, 2009), such utilisation is not extensive among public accounting firms specifically in performing external audit of their business clients (Curtis & Payne, 2008). Furthermore, previous study examines the adoption of audit technology through the perspective of individual auditors (Janvrin, Bierstaker, & Lowe 2008). that provide audit services.…”

The Opinion of Auditors towards the Importance and Knowledge of Information Technology in Kuwait

“…Palestine: Humdona andHamdan, 2008. USA: Janvrin et al;2008;Henderson et al;2013;Strong and Portz, 2015. USA and German: Prosch et al;2008.…”

“…Humdona and Hamdan suggested that executives of the profession need to foster the practice of e-audit in the audit processes by adopting new rules and improving the quality control criteria. Janvrin et al (2008) examined the use of audit IT and its perceived importance across several audit applications among 181 auditors. These auditors represent three types of firms namely Big 4, national regional and local firms.…”