Big Data, Data Analytics and External Auditing

Balios, Dimitris; Kotsilaras, Panagiotis; Eriotis, Nikolaos; Vasiliou, D.

doi:10.17265/1548-6583/2020.05.002

Cited by 14 publications

(18 citation statements)

References 32 publications

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“…The advancement of techniques like pattern recognition and natural language processing has increased the predictive capability of data analytics (Al-Omoush et al , 2021). Due to advancements in data collection and processing technology, the role of managers, accountants and auditors in producing, analyzing and encouraging information use has shifted away from simply providing accurate and reliable information and toward providing a system that can be monitored and improved over time to provide accurate and reliable information (Elliott, 1992; Zadeh et al , 2015; Balios et al , 2020; Abu Afifa et al , 2022). Additionally, accounting has evolved into a discipline capable of adapting to massive volumes of data due to its importance to enterprises and policymakers in acquiring information and data about economic events (Davenport, 2014; Cappa et al , 2021).…”

Section: Introductionmentioning

confidence: 99%

“…Most auditors concentrate their data analytics efforts on data supplied by client-provided accounting information systems, which are often basic and have inherent structures (Salijeni et al , 2019). To maintain a competitive edge in the assurance services industry, auditors must develop unstructured data analytic capabilities that allow them to apply their problem-solving techniques to considerably bigger data sets (Balios et al , 2020). These continuous changes in the Big Data environment prompted us to investigate the influence of Big Data on financial reporting from both an accounting and auditing standpoint and, additionally, evaluate the accounting issues posed by Big Data.…”

Section: Introductionmentioning

confidence: 99%

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Big Data analytics and financial reporting quality: qualitative evidence from Canada

Saleh

Marei

Ayoush

et al. 2022

JFRA

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Purpose Big Data analytics (BDA) and its implications for the accounting profession continue to be a key issue that requires more research and evaluation. As a result, the purpose of this study is to evaluate the impact of BDA on financial reporting quality, as well as to assess the accounting challenges associated with Big Data. It provides qualitative evidence from Canada. Design/methodology/approach This study used a qualitative approach to ascertain the thoughts and perceptions of auditors, financial analysts and accountants at Canadian audit and accounting firms in BDA and its impact on financial reporting quality, using semi-structured interviews. To obtain their consent to participate in the interview, 127 auditors, financial analysts and accountants from Canadian audit and accounting firms were initially approached. The final number of respondents was 41, representing a response rate of 32%. Findings The authors’ findings underscored the relevance of Big Data and BDA in affecting financial report quality and revealed that BDA had a significant effect on improving financial reporting quality. Big Data improves accounting reporting and expert judgment by providing professional. In summary, participants agreed that when analytical methods in Big Data are implemented effectively, businesses may possibly achieve a variety of benefits, including customized goods, simplified processes, improved risk assessment process and, finally, increased risk management. Practical implications The authors’ findings indicate that BDA may help predict investment returns and risks, estimate future investment opportunities, forecast revenues, detect fraud and susceptibility early and identify economic growth opportunities. As a result, auditors, financial analysts, accountants, investors and other strategic decision-makers should be aware of these findings to make informed choices. Originality/value Big Data has become the norm in recent years; accountants and other decision-makers have struggled to analyze massive amounts of data. This limits their capacity to profit from such data even more. Therefore, this study is motivated by the lack of research on Big Data’s influence on financial report quality.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Big Data analytics and financial reporting quality: qualitative evidence from Canada

Saleh

Marei

Ayoush

et al. 2022

JFRA

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“…Keberadaan data analytics dalam upaya pendeteksian kecurangan dan fraud memiliki peran krusial di ranah bisnis dan keuangan modern (Dimitris Balios et al, 2020). Salah satu manfaat utamanya adalah kemampuan untuk mengungkap perilaku mencurigakan serta pola kecurangan yang mungkin sulit diungkapkan secara manual (Suryani et al, 2021).…”

Section: Berdasarkan Rilis Association Of Certified Fraud Examiners (...unclassified

Identifikasi Fraud Dalam Pemeriksaan Internal Melalui Data Analytics

Prasetyo,

Wulandari,

Meini

et al. 2024

EQUITY

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Fraud telah menjadi masalah yang merajalela di era digital dan big data, menghadirkan ancaman signifikan bagi organisasi di berbagai industri. Seiring dengan kemajuan teknologi, taktik penipu juga berkembang, sehingga penting bagi organisasi untuk tetap waspada dan menerapkan langkah-langkah identifikasi penipuan yang efektif. Penelitian ini bertujuan untuk menyelidiki bagaimana penggunaan data analytics memengaruhi cara auditor memahami tanda-tanda kecurangan. Sampel penelitian terdiri dari auditor internal, yang memiliki tanggung jawab memberikan rekomendasi terkait keberlanjutan, keandalan, relevansi, dan ketiadaan kesalahan material dalam laporan audit. Data penelitian ini berfokus pada auditor internal yang bekerja di perusahaan pembiayaan di Pulau Jawa. Pengambilan sampel dilakukan menggunakan metode nonprobability sampling, dengan jenis teknik sampel purposive sampling, Dan pengelolaan data mengunakan STATA versi 14. Berdasarkan hasil penelitian menunjukan bahwa penerapan data analytics memiliki dampak positif dalam mengidentifikasi fraud. Selain itu, penggunaan data analytics memberikan manfaat tambahan bagi auditor, seperti mempermudah pengumpulan bukti, menentukan populasi secara luas, memprediksi risiko, dan memfasilitasi analisis data yang cepat. Kata Kunci: Fraud; Data Analytics; Internal Audit; Big Data

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“…The auditors’ main task is to ensure that the procedures and judgments they carry out are supported by sufficient and valid data (Balios et al , 2020; Deniswara et al , 2020). However, today’s rapid technological developments have led to the emergence of various forms of very large and complex amounts of data (big data).…”

Section: Literature Reviewmentioning

confidence: 99%

Big data analytics and auditor judgment: an experimental study

Sihombing

Narsa

Harymawan

2023

ARJ

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Purpose Auditors’ skills and knowledge of data analytics and big data can influence their judgment at the audit planning stage. At this stage, the auditor will determine the level of audit risk and estimate how long the audit will take. This study aims to test whether big data and data analytics affect auditors’ judgment by adopting the cognitive fit theory. Design/methodology/approach This was an experimental study involving 109 accounting students as participants. The 2 × 2 factorial design between subjects in a laboratory setting was applied to test the hypothesis. Findings First, this study supports the proposed hypothesis that participants who are provided with visual analytics information will rate audit risk lower than text analytics. Second, participants who receive information on unstructured data types will assess audit risk (audit hours) higher (longer) than those receiving structured data types. In addition, those who receive information from visual analytics results have a higher level of reliance than those receiving text analytics. Practical implications This research has implications for external and internal auditors to improve their skills and knowledge of data analytics and big data to make better judgments, especially when the auditor is planning the audit. Originality/value Previous studies have examined the effect of data analytics (predictive vs anomaly) and big data (financial vs non-financial) on auditor judgment, whereas this study examined data analytics (visual vs text analytics) and big data (structured and unstructured), which were not tested in previous studies.

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Big Data, Data Analytics and External Auditing

Cited by 14 publications

References 32 publications

Big Data analytics and financial reporting quality: qualitative evidence from Canada

Big Data analytics and financial reporting quality: qualitative evidence from Canada

Identifikasi Fraud Dalam Pemeriksaan Internal Melalui Data Analytics

Big data analytics and auditor judgment: an experimental study

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