The use of data analytics in external auditing: a content analysis approach

Abstract

Purpose

This study examines the perceptions of interested stakeholders on the factors affecting the use of data analytics (DA) in financial statement audits. Response letters submitted by stakeholders of the auditing services to the International Auditing and Assurance Standards Board's (IAASB) Data Analytics Working Group (DAWG) served as sources for analysis.

Design/methodology/approach

The modified information technology audit model was used as a framework to perform a direct content analysis of all the 50 response letters submitted to the DAWG.

Findings

The analysis showed that a range of attributes, such as the usefulness of DA in auditing, authoritative guidance (auditing standards), data reliability and quality, auditors' skills, clients' factors and costs, were the factors perceived by stakeholders to be affecting the use of DA in external auditing.

Research limitations/implications

This study is subjected to the limitations inherent to all content analysis studies. Nonetheless, the findings offer additional insights about potential factors affecting the adoption of DA in audit practices.

Originality/value

The data noted in the published statements highlighted the perceptions of a range of stakeholders with regards to the factors affecting the use of DA in auditing.

Citation

Jacky, Y. and Sulaiman, N.A. (2022), "The use of data analytics in external auditing: a content analysis approach", Asian Review of Accounting, Vol. 30 No. 1, pp. 31-58. https://doi.org/10.1108/ARA-11-2020-0177