Investigating the impact of adopting big data and data analytics on enhancing audit quality

Abstract

Purpose This study aims to empirically investigate the impact of adopting big data and data analytics (BD&A) on audit quality (AQ). Design/methodology/approach A questionnaire was distributed among audit practitioners working at audit firms in Egypt and 205 responses were collected. Partial least square structural equation modeling (PLS-SEM) was used to analyze and test research hypotheses. Findings The results reveal that BD&A has a direct significant positive effect on the audit process (AP) and auditor competence (AC). However, an insignificant impact of BD&A is found on audit fees (AF). In addition, the results indicate that BD&A has significant positive direct and indirect impacts on AQ. Research limitations/implications The results of this study will benefit several auditing stakeholders, such as audit firms, audit regulators, novice financial auditors and academic scholars. Originality/value This research is one of the earliest to empirically address the role of BD&A in enhancing AQ. It incorporates AP, AC and AF as mediators into a single model to explain the impact of BD&A on AQ. Also, it attempts to provide empirical evidence from a developing country with a less-regulated audit environment.