The Use of Technology Based Audit Techniques in the Internal Audit Function – Is There an Improvement in Efficiency and Effectiveness?

30 Pages Posted: 4 Sep 2019

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

Date Written: August 28, 2019

Abstract

The effective use of technology and advanced data analytics can be a competitive advantage for companies in today’s operating environment. The use of technology based audit techniques has also become an important part of the internal audit function. Using a unique and proprietary dataset, our study focusses on the effects of technology based audit techniques on the performance of internal audits. We analyze a total number of 159 internal audits performed by 91 different internal auditors. We gather data on the maturity level of technology based audit techniques in the IAF and the individual use of such techniques by the participating internal auditors. Our results demonstrate that the participating internal auditors evaluate the use of the IAF’s results by different stakeholders to be greater if technology based techniques are implemented to a greater degree. Depending on the specific stakeholder, we find slightly differing results. Most notably, we find that internal auditors perceive C-level executives and audit committees use internal audit results more intently when there is greater implementation of technology within the IAF.

Keywords: Internal Audit, Internal Auditing Function, Data Analytics, Technology-based Audit Techniques, Continuous Auditing

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

Suggested Citation

Eulerich, Marc and Masli, Adi, The Use of Technology Based Audit Techniques in the Internal Audit Function – Is There an Improvement in Efficiency and Effectiveness? (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

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