Incorporating big data in audits: Identifying inhibitors and a research agenda to address those inhibitors

Alles, Michael; Gray, Glen L.

doi:10.1016/j.accinf.2016.07.004

Cited by 98 publications

(76 citation statements)

References 13 publications

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“…Responding to the above developments in audit practice and methodology, recent audit literature has offered some initial assessment of the potential relevance of BDA to auditing, particularly in areas of risk assessment and performance of substantive and analytical procedures (Alles, 2015;Cao et al, 2015;Yoon et al, 2015;Krahel & Titera, 2015;Wang and Cuthbertson, 2015;Alles & Gray, 2016;Appelbaum et al, 2017). Cao et al (2015), for example, suggest that BDA provides opportunities for auditors to navigate messy data at a faster rate and to create patterns and trends which can provide a more microscopic visualization of risks associated with the audited entity, assisting in determining the level of materiality.…”

Section: Developments In Audit Technology and Bdamentioning

confidence: 99%

Big Data and changes in audit technology: contemplating a research agenda

Salijeni

Samsonova-Taddei

Turley

2018

Accounting and Business Research

135

123

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This study explores the most recent episode in the evolution of audit technology, namely the incorporation of Big Data and Data Analytics (BDA) into audit firm approaches. Drawing on twenty-two interviews with individuals with significant experience in developing, implementing or assessing the impact of BDA in auditing, together with publicly available documents on BDA published within the audit field, the paper provides a holistic overview of BDA-related changes in audit practice. In particular, the paper focuses on three key aspects, namely: the impact of BDA on the nature of the relationship between auditors and their clients; the consequences of the technology for the conduct of audit engagements; and the common challenges associated with embedding BDA in the audit context. The study's empirical findings are then used to establish an agenda of areas suitable for further research on the topic. The study is one of the first empirical accounts providing a perspective on the rise of BDA in auditing.

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Section: Developments In Audit Technology and Bdamentioning

confidence: 99%

Big Data and changes in audit technology: contemplating a research agenda

Salijeni

Samsonova-Taddei

Turley

2018

Accounting and Business Research

135

123

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“…Notably, large audit companies (such as the Big 4) see BD as an increasingly essential part of their assurance practice (Alles and Gray, 2016). It is important to note that the size of the company determines the use of BD technologies not only due to prism of the size of the audit company itself, but also based on the size of the audit client.…”

Section: Company Factors Strategy-related Factors the Use Of Modernmentioning

confidence: 99%

Motivation to use big data and big data analytics in external auditing

Dagilienė

Klovienė

2019

MAJ

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Purpose This paper aims to explore organisational intentions to use Big Data and Big Data Analytics (BDA) in external auditing. This study conceptualises different contingent motivating factors based on prior literature and the views of auditors, business clients and regulators regarding the external auditing practices and BDA. Design/methodology/approach Using the contingency theory approach, a literature review and 21 in-depth interviews with three different types of respondents, the authors explore factors motivating the use of BDA in external auditing. Findings The study presents a few key findings regarding the use of BD and BDA in external auditing. By disclosing a comprehensive view of current practices, the authors identify two groups of motivating factors (company-related and institutional) and the circumstances in which to use BDA, which will lead to the desired outcomes of audit companies. In addition, the authors emphasise the relationship of audit companies, business clients and regulators. The research indicates a trend whereby external auditors are likely to focus on the procedures not only to satisfy regulatory requirements but also to provide more value for business clients; hence, BDA may be one of the solutions. Research limitations/implications The conclusions of this study are based on interview data collected from 21 participants. There is a limited number of large companies in Lithuania that are open to co-operation. Future studies may investigate the issues addressed in this study further by using different research sites and a broader range of data. Practical implications Current practices and outcomes of using BD and BDA by different types of respondents differ significantly. The authors wish to emphasise the need for audit companies to implement a BD-driven approach and to customise their audit strategy to gain long-term efficiency. Furthermore, the most challenging factors for using BDA emerged, namely, long-term audit agreements and the business clients’ sizes, structures and information systems. Originality/value The original contribution of this study lies in the empirical investigation of the comprehensive state-of-the-art of BDA usage and motivating factors in external auditing. Moreover, the study examines the phenomenon of BD as one of the most recent and praised developments in the external auditing context. Finally, a contingency-based theoretical framework has been proposed. In addition, the research also makes a methodological contribution by using the approach of constructivist grounded theory for the analysis of qualitative data.

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“…The investors' sentiment can be understood through the content of Tweets (Corea, 2016). For example, a large number of negative comments and sentiments in Tweets that targets a specific company might predict a future decline of its revenue (Alles & Gray, 2016) and imply a negative effect of share prices.…”

Section: Literature Reviewmentioning

confidence: 99%

Using social media analytics: The effect of President Trump’s tweets on companies’ performance

Juma’h¹,

Alnsour²

2018

JAMIS

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Social media is becoming one of the main sources of unstructured data. Many financial analysts use Twitter to gather data and obtain meaningful insights. Recently, high-profile politicians like President Trump have been using Twitter to communicate with the public. The President's Tweets are used as considered to be informative signals that may influence consumers and affect investors' decisions in the stock market. The effect of these signals can be measured by coinciding changes in the stock market or changes in the share prices of certain companies targeted in the President's Tweets. The Tweets used in this research include keywords that are related to finance and economics, public policy, political considerations, and targeted companies. Event study methodology is used to determine the relationship between Trump's Tweets' content and daily changes in major indexes and targeted companies' excess returns. Although many of the recent discussions have indicated that Trump's microblogging can affect the financial markets, the results, on average, show no significant effect of Trump's Tweets on either market indexes nor on most of the targeted companies share prices.

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Incorporating big data in audits: Identifying inhibitors and a research agenda to address those inhibitors

Cited by 98 publications

References 13 publications

Big Data and changes in audit technology: contemplating a research agenda

Big Data and changes in audit technology: contemplating a research agenda

Motivation to use big data and big data analytics in external auditing

Using social media analytics: The effect of President Trump’s tweets on companies’ performance

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