Data Visualization in Local Accounting Firms: Is Slow Technology Adoption Rational?

Buchheit, Steve; Dzuranin, Ann C.; Hux, Candice; Riley, Mark E.

doi:10.2308/ciia-2019-501

Cited by 21 publications

(9 citation statements)

References 8 publications

(16 reference statements)

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“…Some UK participants revealed that advanced data visualisation will assist external auditors to better communicate the outcomes of the audit and the content of the audit report. This finding is consistent with the Buchheit et al (2020) study that found local-firm partners have positive perceptions regarding the value that advanced data visualisation can have on audit quality and client-related benefits. Any increased level of communication improves client and auditor interactions as it further conveys how these actors carry and (re)produce rules (Element 3 of the framework).…”

Section: Research Findingssupporting

confidence: 91%

The emergence of audit data analytics in existing audit spaces: findings from three technologically advanced audit and assurance service markets

Kend

Nguyen

2022

QRAM

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Purpose The purpose of this exploratory study is to better understand the interactions between external auditors, their audit clients and audit regulators when considering the supply of and demand for high-level audit technology. The authors examine the developed markets of Australia, New Zealand and the UK to better understand: how high-level audit technology has started to become embedded into existing audit spaces and any emerging issues this technology has created for the audit profession. Design/methodology/approach Through the theoretical lens of the socio-technical (ST) systems of innovation theory, the present study involved semi-structured interviews with 25 stakeholders in Australia and New Zealand from 2019 to 2020 and 21 stakeholders in the UK from 2016 to 2018. Findings Advancements are revitalizing the technologies of not only the external auditors and their firms but also of their audit clients. Although the audit model is changing, external auditors are reported to be reluctant to fully engage with new audit technologies. In this setting, the authors find audit rules are yet to become embedded in the objects or practices of ST systems and that keeping up with the pace of change for regulators and standard setters is a major challenge. Practical implications The findings of this study raise call for regulators to be more up to speed with these new technological changes, as audit standards need to be amended accordingly. Although the International Auditing and Assurance Standards Board deliberates, both clients and auditors need to lobby for specific audit data analytics regulations. Originality/value The present study provides perspectives about new audit practices that emerge due to high-level technological advancements and then embed themselves into existing audit spaces. The authors draw on several different stakeholder groups, not just the Big Four firms. The ST systems theoretical lens we adopt better helps us understand how audit firms at the organisational level are adapting to these new technological changes in existing audit spaces.

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Section: Research Findingssupporting

confidence: 91%

The emergence of audit data analytics in existing audit spaces: findings from three technologically advanced audit and assurance service markets

Kend

Nguyen

2022

QRAM

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“…Prior literature describes some of the changes to the accounting and auditing profession due to the use of data analytics (Cao et al 2015; Schneider et al 2015; Vasarhelyi et al 2015; Warren et al 2015; Richins et al 2017; Beaulieu 2020; Buchheit et al 2020). For example, Krahel and Titera (2015, 411) describe the technological advances that can “enable faster and more articulate data collection and transmission” and can improve costing, present value calculations, and estimates.…”

Section: Theoretical Underpinningsmentioning

confidence: 99%

The Data Analytics Journey: Interactions Among Auditors, Managers, Regulation, and Technology*

Austin

Carpenter²,

Christ³

et al. 2021

Contemporary Accting Res

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Data analytics is transforming our global markets and significantly impacting the financial reporting environment. We investigate how auditors, company managers, and regulation interact with data analytics and one another to affect the diffusion (i.e., development and spread) of data analytics throughout the financial reporting environment. We interview company managers and their audit partners, as well as additional stakeholders, including regulators. We interpret findings from our interviews using theory that highlights the importance of dynamic interactions between people and their environments, which include the prevailing rules (e.g., regulatory guidance). Our findings contribute to the accounting literature and practice by revealing three areas of conflict emerging from stakeholders' disparate preferences for data analytics. First, we uncover growing tensions between managers and audit partners regarding audit fees. Second, we find that managers and auditors believe the lack of accounting regulation specific to data analytics causes confusion and frustration. Finally, auditors report that they strategically leverage data analytics to provide clients with business‐related insights. However, regulators voice concerns that this practice might impair auditor independence and reduce audit quality. These areas of conflict suggest a need to revisit key tensions surrounding the audit function in a contemporary context characterized with significant technological shift.

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“…However, this desire by auditors to generate client insights to demonstrate their value should not be the main driving factor for adopting emerging technologies. Buchheit et al (2020) surveyed 31 US audit partners and one manager who audited private companies. Results suggest that client complexity is central to technology adoption.…”

Section: Influence Of Audit Client On Auditor's Adoption Of Emerging ...mentioning

confidence: 99%

The effects of person‐specific, task, and environmental factors on digital transformation and innovation in auditing: A review of the literature

Barr‐Pulliam

Brown‐Liburd

Munoko

2022

Financ Manag Account

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This study reviews literature examining digital transformation in the external audit setting. Our review will inform the standard-setting initiatives of the International Auditing and Assurance Standards Board (IAASB) related to the use of technology in auditing.We identified 36 articles on digital transformation in the external audit published between 2000 and 2021 across 20 journals ranked A*, A, B, and C on the Australian Business Deans Council (ABDC) 2021 Journal Quality List. We also identified 18 advanced working papers. These articles cover conceptual frameworks and archival, experimental, interviews, case studies, and survey research methods. Fifty percent of the published articles appear in A* or A journals, of which nine were published in one of the premier six accounting research journals (i.e., A*) since 2020. This trend is a promising sign that there appears to be increasing interest in publishing digital transformationrelated research in these general interest journals. We use the Bonner judgment and decision-making framework, coupled with the four primary data analytic tools, to organize and evaluate the literature. This study examines descriptive and diagnostic analytics; more complex techniques, such as predictive and prescriptive,

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Data Visualization in Local Accounting Firms: Is Slow Technology Adoption Rational?

Cited by 21 publications

References 8 publications

The emergence of audit data analytics in existing audit spaces: findings from three technologically advanced audit and assurance service markets

The emergence of audit data analytics in existing audit spaces: findings from three technologically advanced audit and assurance service markets

The Data Analytics Journey: Interactions Among Auditors, Managers, Regulation, and Technology*

The effects of person‐specific, task, and environmental factors on digital transformation and innovation in auditing: A review of the literature

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