Audit Data Analytics Use: An Exploratory Analysis

28 Pages Posted: 1 Dec 2016 Last revised: 19 Dec 2016

See all articles by Clark Hampton

Clark Hampton

University of Waterloo

Theophanis C. Stratopoulos

University of Waterloo - School of Accounting and Finance

Date Written: November 29, 2016

Abstract

The goal of this study is to understand the current state of audit data analytics use (i.e., the leveraging of data analytics in the performance of audits) within the Canadian audit profession. Based on survey results from 394 Canadian audit practitioners, we explore the following three questions: What is the locus of motivation behind audit data analytics (ADA) use? Does the creation of a supporting environment (e.g., firms provide training opportunities) matter in ADA use? What is the tradeoff between two potential ADA training strategies (i.e., diversity of ADA tools vs. development of ADA expertise)? Research questions are examined using path models estimated with components based structural equation modeling. Our study provides guidance to audit practitioners, professional organizations, and educators concerning current and future ADA initiatives.

Keywords: Audit Data Analytics (ADA), ADA Use, Client Expectations, Audit Opinion Confidence, Litigation Risk, Survey Based Research

JEL Classification: M42, M15

Suggested Citation

Hampton, Clark and Stratopoulos, Theophanis C., Audit Data Analytics Use: An Exploratory Analysis (November 29, 2016). Available at SSRN: https://ssrn.com/abstract=2877358 or http://dx.doi.org/10.2139/ssrn.2877358

Clark Hampton

University of Waterloo ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1 N2L 3G1
Canada

Theophanis C. Stratopoulos (Contact Author)

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1 N2L 3G1
Canada
519-888-4567 x35943 (Phone)

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