The Impact of Audit Technology on Audit Outcomes: Technology-Based Audit Techniques’ Impact on Internal Auditing

51 Pages Posted: 4 Sep 2019 Last revised: 5 Aug 2020

See all articles by Marc Eulerich

Marc Eulerich

University of Duisburg-Essen, Mercator School of Management

Adi Masli

University of Arkansas - Sam M. Walton College of Business

Jeffrey S. Pickerd

The University of Mississippi

David A. Wood

Brigham Young University - School of Accountancy

Date Written: August 28, 2019

Abstract

Although auditors invest significantly in technology, research has provided limited evidence of the ability of audit technology to enhance audit outcomes. Using a unique and proprietary dataset, our study examines the effects of technology-based audit techniques (TBATs) on the efficiency and effectiveness of internal audits as well as on internal auditors’ perception of stakeholder reliance on their audits. Using a dataset that measures individual audit engagements, we found that the degree to which TBATs are used is positively associated with more efficient and effective audits and with more perceived reliance on audit results. We also found that TBATs’ impact depends on the particular phases of the audit in which they are used. Specifically, we found that effectiveness and efficiency are improved in all areas except when used in planning where TBATS are associated with increased effectiveness but not increased efficiency. Our findings contribute to the discussion about the costs and benefits of using technology in internal audits and assurance work more generally.

Keywords: Technology, Internal Audit, Data Analytics, Auditing, Technology-Based Audit Techniques

JEL Classification: M40, M42, G34, G32, M4, G3

Suggested Citation

Eulerich, Marc and Masli, Adi and Pickerd, Jeffrey Scott and Wood, David A., The Impact of Audit Technology on Audit Outcomes: Technology-Based Audit Techniques’ Impact on Internal Auditing (August 28, 2019). Available at SSRN: https://ssrn.com/abstract=3444119 or http://dx.doi.org/10.2139/ssrn.3444119

Marc Eulerich (Contact Author)

University of Duisburg-Essen, Mercator School of Management ( email )

Lotharstrasse 65
Duisburg, 47057
Germany
00492033792600 (Phone)

HOME PAGE: http://www.msm.uni-due.de/ircg

Adi Masli

University of Arkansas - Sam M. Walton College of Business ( email )

Fayetteville, AR 72701
United States

Jeffrey Scott Pickerd

The University of Mississippi ( email )

University, MS 38677
United States

David A. Wood

Brigham Young University - School of Accountancy ( email )

518 TNRB
Brigham Young University
Provo, UT 84602
United States
801-422-8642 (Phone)
801-422-0621 (Fax)

HOME PAGE: http://marriottschool.byu.edu/employee/employee.cfm?emp=daw44

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