Audit Data Analytics Use: An Exploratory Analysis

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