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Study on the reliability assessment and early-warning method of online auditing based on the perspective of IT control

Wei Chen (Nanjing Audit University, Nanjing, China)
Wally Smieliauskas (University of Toronto, Toronto, Canada)
Sifeng Liu (Nanjing University of Aeronautics and Astronautics, Nanjing, China)

Grey Systems: Theory and Application

ISSN: 2043-9377

Article publication date: 14 August 2020

Issue publication date: 18 June 2021

197

Abstract

Purpose

An important issue in online auditing is how to improve the reliability of online auditing in order to reduce the overall audit risk. In this paper, a reliability assessment and early-warning method of online auditing based on RC (rank centroid), AHP (analytic hierarchy process) and GM (1,1) is proposed from the perspective of information technology (IT) audit risk control.

Design/methodology/approach

The paper begins by structuring the AHP hierarchy to the reliability assessment of online auditing used in China. Then, RC is used to rank the importance of the assessment criteria. Pairwise comparisons of criteria are made based on the rank results of RC, and this leads to a matrix of comparisons. Next, the comparison matrices are translated into weights, and the reliability assessment and early-warning model of online auditing is constructed using the GM (1,1) model. A case illustration is given to analyze the application of this method.

Findings

Research results show that the reliability of the evaluation method designed in this paper is rigorous and effective. The reliability assessment and early-warning method of online auditing based on RC/AHP/GM (1,1) can assess and give an effective early warning of reliability changes in an online auditing system, which can meet the needs of current online auditing projects.

Practical implications

The results of this study have good potential for widespread future implementation of online auditing projects.

Originality/value

An effective reliability assessment and early-warning method of online auditing is proposed from the perspective of IT audit risk control in this study.

Keywords

Acknowledgements

This research was supported by the National Natural Science Foundation of China under Grant 71572080. The authors greatly appreciate their financial support and encouragement.The paper is from the 2019 international congress on grey systems and uncertainty analysis (GSUA 2019)

Citation

Chen, W., Smieliauskas, W. and Liu, S. (2021), "Study on the reliability assessment and early-warning method of online auditing based on the perspective of IT control", Grey Systems: Theory and Application, Vol. 11 No. 3, pp. 484-497. https://doi.org/10.1108/GS-09-2019-0032

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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