Browse > Article
http://dx.doi.org/10.13106/jafeb.2022.vol9.no2.0093

The Impact of Big Data Analytics on Audit Procedures: Evidence from the Middle East  

ALRASHIDI, Mousa (Ministry of Commerce and Industry)
ALMUTAIRI, Abdullah (General Secretariat for the Council of Ministers)
ZRAQAT, Omar (Accounting Department, Jerash University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.9, no.2, 2022 , pp. 93-102 More about this Journal
Abstract
The goal of this study was to see how big data analytics (BDA) affected external audit procedures in the Middle East. The measurement model and structural model of this investigation were evaluated using PLS-SEM (3.3.3). The study sample members were (361) auditors who work in auditing companies in Kuwait, Saudi Arabia, the United Arab Emirates, Jordan, Bahrain, Egypt, Lebanon, and Iraq. A questionnaire was chosen to the study sample members electronically, and the study sample members were (5093) auditors who work in auditing companies in Kuwait, Saudi Arabia, the United Arab Emirates, Jordan, Bahrain, Egypt, Lebanon, and Iraq. To choose the sample, the researchers used a stratified random sampling procedure. The findings show that BDA has an impact on audit procedures at all phases of the auditing process, where it contributes to information delivery that helps auditors understand the client's internal and external environments, which in turn influences the choice to accept the audit assignment. Furthermore, by providing essential information, BDA enables auditors to simply run analytical procedures, estimate client risks, and understand and evaluate the internal control system. As a result, auditors must develop their abilities in the BDA field, as it adds to the creation of additional value for both auditors and their clients.
Keywords
Big Data; Big Data Analytics; External Audit Profession; Middle East;
Citations & Related Records
Times Cited By KSCI : 5  (Citation Analysis)
연도 인용수 순위
1 Salijeni, G., Samsonova-Taddei, A., & Turley, S. (2019). Big Data and changes in audit technology: contemplating a research agenda. Accounting and Business Research, 49(1), 95-119. https://doi.org/10.1080/00014788.2018.1459458   DOI
2 Salijeni, G., Samsonova-Taddei, A., & Turley, S. (2021). Understanding how big data technologies reconfigure the nature and organization of financial statement audits: A socio-material analysis. European Accounting Review, 30(3), 531-555. https://doi.org/10.1080/09638180.2021.1882320   DOI
3 Tiberius, V., & Hirth, S. (2019). Impacts of digitization on auditing: A Delphi study for Germany. Journal of International Accounting, Auditing, and Taxation, 37, 100288. https://doi.org/10.1016/j.intaccaudtax.2019.100288   DOI
4 Yoon, K., Hoogduin, L., & Zhang, L. (2015). Big data as complementary audit evidence. Accounting Horizons, 29(2), 431-438. https://doi.org/10.2308/acch-51076   DOI
5 Alotaibi, M. Z., Alotibi, M. F., & Zraqat, O. M. (2021). The impact of information technology governance in reducing cloud accounting information systems risks in telecommunications companies in the state of Kuwait. Modern Applied Science, 15(1), 143-151. https://doi.org/10.5539/mas.v15n1p143   DOI
6 Appelbaum, D. (2016). Securing big data provenance for auditors: The big data provenance black box as reliable evidence. Journal of Emerging Technologies in Accounting, 13(1), 17-36. https://doi.org/10.2308/jeta-51473   DOI
7 Appelbaum, D. A., Kogan, A., & Vasarhelyi, M. A. (2017). Big data and analytics in the modern audit engagement: Research needs. Auditing: A Journal of Practice and Theory, 36(4), 1-27. https://doi.org/10.2308/ajpt-51684   DOI
8 Austin, A. A., Carpenter, T. D., Christ, M. H., & Nielson, C. S. (2021). The data analytics journey: Interactions among auditors, managers, regulation, and technology. Contemporary Accounting Research, 38(3), 1888-1924. https://doi.org/10.1111/1911-3846.12680   DOI
9 Lee, J. W. (2021). The Data Sharing Economy and Open Governance of Big Data as Public Good. The Journal of Asian Finance, Economics and Business, 8(11), 87-96. https://doi.org/10.13106/jafeb.2021.vol8.no11.0087   DOI
10 Dowling, C., & Leech, S. A. (2014). A big 4 firm's use of information technology to control the audit process: How an audit support system is changing auditor behavior. Contemporary Accounting Research, 31(1), 230-252. https://doi.org/10.1111/1911-3846.12010   DOI
11 Richins, G., Stapleton, A., Stratopoulos, T. C., & Wong, C. (2017). Big data analytics: Opportunity or threat for the accounting profession? Journal of Information Systems, 31(3), 63-79. https://doi.org/10.2308/isys-51805   DOI
12 Serag, A. A. & Al-Aqiliy, L. M. (2020). A proposed framework for big data analytics in external auditing and its impact on audit quality with a field study in Egypt, Alexandria Journal of Accounting Research, 4(3), 1-60. https://doi.org/10.21608/ALJALEXU.2020.124109
13 Hair, Jr, J. F., Sarstedt, M., Matthews, L. M., & Ringle, C. M. (2016). Identifying and treating unobserved heterogeneity with FIMIX-PLS: part I-method. European Business Review, 28(1), 63-76. https://doi.org/10.1108/EBR-09-2015-0094   DOI
14 Zraqat, O. M. (2020). The moderating role of business intelligence in the impact of big data on financial reports quality in Jordanian telecom companies. Modern Applied Science, 14(2), 71-85. https://doi.org/10.5539/mas.v14n2p71   DOI
15 Zraqat, O., Zureigat, Q., Al-Rawashdeh, H. A., Okour, S. M., Hussien, L. F., & Al-Bawab, A. A. (2021). The Effect of Corporate Social Responsibility Disclosure on Market Performance: Evidence from Jordan. The Journal of Asian Finance, Economics and Business, 8(8), 453-463. https://doi.org/10.13106/jafeb.2021.vol8.no8.0453   DOI
16 Zureigat, Q. M. (2014). Auditors' decision to accept new SME clients in Saudi Arabia and auditors' characteristics. International Journal of Business and Social Science, 5(11), 43-51. https://ijbssnet.com/journals/Vol_5_No_11_1_October_2014/5.pdf
17 Chae, S. J., Nakano, M., & Fujitani, R. (2020). Financial reporting opacity, audit quality, and crash risk: Evidence from Japan. The Journal of Asian Finance, Economics, and Business, 7(1), 9-17. https://doi.org/10.13106/jafeb.2020.vol7.no1.9   DOI
18 Dagiliene, L., & Kloviene, L. (2019). Motivation to use big data and big data analytics in external auditing. Managerial Auditing Journal, 34(7), 750-782. https://doi.org/10.1108/MAJ-01-2018-1773   DOI
19 Zureigat, Q. M. (2015). IFRS compliance and audit quality: evidence from KSA. International Journal of Accounting, Auditing and Performance Evaluation, 11(2), 188-201. https://doi.org/10.1504/IJAAPE.2015.068869   DOI
20 Gepp, A., Linnenluecke, M. K., O'Neill, T. J., & Smith, T. (2018). Big data techniques in auditing research and practice: Current trends and future opportunities. Journal of Accounting Literature, 40, 102-115. https://doi.org/10.1016/j.acclit.2017.05.003   DOI
21 Hussien, L., Okour, S., AlRawashdeh, H., Ali, O., Zraqat, O., & Zureigat, Q. (2021). Explanatory factors for asymmetric cost behavior: Evidence from Jordan. International Journal of Innovation, Creativity, and Change, 15(4), 201-219.
22 Ji, S. H., & Yoon, K. C. (2020). The effects of widening daily stock price limit the relevance between audit quality and stock return. The Journal of Asian Finance, Economics, and Business, 7(4), 107-119. https://doi.org/10.13106/jafeb.2020. vol7.no4.107   DOI
23 Kend, M., & Nguyen, L. A. (2020). Big data analytics and other emerging technologies: the impact on the Australian audit and assurance profession. Australian Accounting Review, 30(4), 269-282. https://doi.org/10.1111/auar.12305   DOI
24 International Auditing and Assurance Standards Board (IAASB). (2013). A framework for audit quality key elements that create an environment for audit quality. https://www.ifac.org/system/files/uploads/IAASB/Framework-for-Audit-Quality-Outline.pdf
25 Lohapan, N. (2021). Digital Accounting Implementation and Audit Performance: An Empirical Research of Tax Auditors in Thailand. The Journal of Asian Finance, Economics and Business, 8(11), 121-131. https://doi.org/10.13106/jafeb.2021.vol8.no11.0121   DOI
26 Manita, R., Elommal, N., Baudier, P., & Hikkerova, L. (2020). The digital transformation of external audit and its impact on corporate governance. Technological Forecasting and Social Change, 150, 119751. https://doi.org/10.1016/j.techfore.2019.119751   DOI
27 Eilifsen, A., Kinserdal, F., Messier, W. F., & McKee, T. E. (2020). An exploratory study into the use of audit data analytics on audit engagements. Accounting Horizons, 34(4), 75-103. https://doi.org/10.2308/HORIZONS-19-121   DOI
28 Eulerich, M., Masli, A., Pickerd, J. S., & Wood, D. A. (2019). The impact of audit technology on audit outcomes: Technology-based audit techniques' impact on internal auditing. SSRN Journal, 34, 119. http://doi.org/10.2139/ssrn.3444119   DOI
29 Al-Beshtawi, S. H., Zraqat, O. M., & Moh'd Al-hiyasat, H. (2014). The impact of corporate governance on non-financial performance in Jordanian commercial banks and Islamic Banks. International Journal of Financial Research, 5(3), 54-67. http://doi.org/10.5430/ijfr.v5n3p54   DOI
30 Aledwan, B. A., Zraqat, O. M., & Hussien, L. F. M. (2017). The impact of ownership structure on the insurance company's applicability of corporate governance instructions. Journal of Business & Management, 5(3), 131-152. https://doi.org/10.25255/jbm.2017.5.3.131.152   DOI
31 Brown-Liburd, H., Issa, H., & Lombardi, D. (2015). Behavioral implications of big data's impact on audit judgment and decision making and future research directions. Accounting Horizons, 29(2), 451-468. https://doi.org/10.2308/acch51023   DOI
32 De Santis, F., & D'Onza, G. (2021). Big data and data analytics in auditing: In search of legitimacy. Meditari Accountancy Research, 29(5), 1088-1112. https://doi.org/10.1108/MEDAR-03-2020-0838   DOI
33 Bauer, T., & Estep, C. (2019). One team or two? Investigating relationship quality between auditors and IT specialists: Implications for audit team identity and the audit process. Contemporary Accounting Research, 36(4), 2142-2177. https://doi.org/10.1111/1911-3846.12490   DOI
34 Chin, W. W., Marcolin, B. L., & Newsted, P. R. (2003). A partial least squares latent variable modeling approach for measuring interaction effects: Results from a Monte Carlo simulation study and an electronic-mail emotion/adoption study. Information Systems Research, 14(2), 189-217. https://doi.org/10.1287/isre.14.2.189.16018   DOI
35 Creswell, J. W., & Poth, C. N. (2016). Qualitative inquiry and research design: Choosing among five approaches. Thousand Oaks, CA: Sage publications.
36 Austin, A., Carpenter, T., Christ, M. H., & Nielson, C. (2020). The data analytics transformation: Evidence from auditors, CFOs, and standard-setters. SSRN Electronic Journal, 32, 111. http://dx.doi.org/10.2139/ssrn.3214140   DOI