Big Data Techniques in Auditing Research and Practice: Current Trends and Future Opportunities

Journal of Accounting Literature, Volume 40, June 2018, Pages 102-115

42 Pages Posted: 10 Mar 2017 Last revised: 11 Feb 2018

See all articles by Adrian Gepp

Adrian Gepp

Bond University - Bond Business School

Martina Linnenluecke

University of Queensland - Business School

Terry O'Neill

Bond University - Faculty of Business, Technology and Sustainable Development

Tom Smith

University of Queensland - Faculty of Business, Economics and Law; Financial Research Network (FIRN)

Date Written: March 7, 2017

Abstract

This paper analyzes the use of big data techniques in auditing and finds it not as widespread as it is in other related fields. We first introduce contemporary big data techniques to promote understanding of their potential application. Next, we review existing research on big data in accounting and finance. In addition to auditing, our analysis shows that existing research extends across three other genealogies: financial distress modelling, financial fraud modelling, and stock market prediction and quantitative modelling. Auditing is lagging behind the other research streams in the use of valuable big data techniques. A possible explanation is that auditors are reluctant to use techniques that are far ahead of those adopted by their clients, but we refute this argument. We call for more research and a greater alignment to practice. We also outline future opportunities for auditing in the context of real-time information and in collaborative platforms and peer-to-peer marketplaces.

Keywords: Auditing, Big Data, Data Analytics, Statistical Techniques

JEL Classification: M42

Suggested Citation

Gepp, Adrian and Linnenluecke, Martina and O'Neill, Terry and Smith, Tom M., Big Data Techniques in Auditing Research and Practice: Current Trends and Future Opportunities (March 7, 2017). Journal of Accounting Literature, Volume 40, June 2018, Pages 102-115. Available at SSRN: https://ssrn.com/abstract=2930767 or http://dx.doi.org/10.2139/ssrn.2930767

Adrian Gepp

Bond University - Bond Business School ( email )

Gold Coast
Australia

Martina Linnenluecke

University of Queensland - Business School ( email )

Brisbane, Queensland 4072
Australia

Terry O'Neill

Bond University - Faculty of Business, Technology and Sustainable Development ( email )

Gold Coast, QLD 4229
Australia

Tom M. Smith (Contact Author)

University of Queensland - Faculty of Business, Economics and Law ( email )

4072 Brisbane, Queensland
Australia

Financial Research Network (FIRN) ( email )

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

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