EXPLORING PERCEPTIONS ON ADOPTING DATA ANALYTIC PROGRAMS IN SMALL AUDIT FIRMS

Abstract

This independent study aims to explore the attitudes of small auditing firms toward the application program of data analytics in audit processes and to foresee problems when adopting the program. Questionnaire is tool for collection data about general information and opinions from auditors and their audit staff of small auditing firms. Both descriptive and inferential statistics apply to analyze the data.       

It is found that small auditing firms agrees to adopt data analytics in each step of their audit processes prioritizing as follows; performing audit, reports and monitors and audit planning and risk assessment. However, small auditing firms foresee problems in implementing the program including high costs and no clear and concrete operational guidelines from standard setters. In addition, this study indicates that the differences of respondent characteristics significantly affect to the implication of data analytic programs and implementation problems. These including firm locations, register shares and data analytic program. The study is useful to those agencies with monitoring small auditing firms to help them to implement data analytics in their audit processes. This is to maintain their competitive advantage.