Impact of remote audit on audit quality, audit efficiency, and auditors' job satisfaction

Abstract

The audit profession has experienced a digital transformation over the last decade with a rapid shift towards remote auditing forced by the recent COVID pandemic. This shift has led to changes related to the way auditors work and perceive. Through a survey of external auditors, this study addresses how the changes from on‐site audits to remote audits affect audit success (i.e., audit quality, audit efficiency, and auditors' job satisfaction); we also explore dispositional and situational factors that contribute to remote audit success. Our results show that working remotely leads to high audit efficiency. Auditors' flexibility management competency leads to high remote audit quality and efficiency; and a physical working environment conducive for concentrating on audit tasks is positively associated with audit efficiency and auditors' job satisfaction for remote audits. We also found that working remotely could enhance audit quality and efficiency when the audit firm provides sufficient support to auditors. Our study provides insights for audit firms, regulators, and other stakeholders as they evaluate the many challenges the audit profession faces in achieving remote audit success.

Remote auditing and its impacts on auditors’ work and work-life balance: auditors’ perceptions and implications

“…Additionally, the strong association between remote auditing and technologies can also enhance audit quality. Some empirical evidence suggests that remote audit does not compromise audit quality (Li et al , 2023), but may result in cost savings, more employee flexibility and the ability to examine clients’ data regardless of their geographical location (Aivazi, 2022). Moreover, remote auditing enhances audit efficiency (Li et al , 2023), potentially due to increased flexibility, time-savings and the ability to access clients’ data on digital platforms.…”