A Framework for Auditor Data Literacy: A Normative Position

Abstract

Due to the nature of the current data--driven business environment, many accounting firms are starting to re-align their audit processes to incorporate technology and Audit Data Analytics (ADA), as the traditional audit procedures would seem to not be sufficiently effective and efficient to meet evolving market expectations (Byrnes et al., 2018; Forbes 2017, 2018). This paper provides commentary on how data analytics knowledge should be required of the profession, in addition to that of traditional accounting. We discuss the current information-centric business environment, the availability of Big Data, and the existing data analytics efforts made by businesses, with its subsequent impact. Regarding the complementarity of available data analytics tools and data analytics knowledge, it proposes a guideline for the content and levels of ADA knowledge and skills that should be required of auditors serving in different roles. Finally, suggestions are provided to facilitate the adoption of ADA and provide solutions to challenges in the CPA exam, audit standards, and education. In this data-centric business environment, acquiring the knowledge and skills of data analysis should be a current professional priority.

The effects of person‐specific, task, and environmental factors on digital transformation and innovation in auditing: A review of the literature

“…Additionally, the region's availability of the necessary talent to develop, deploy and use these emerging technologies plays a significant role (Krieger et al, 2021). On a global scale, the development of technologies resulting in worldwide and real‐time exchange of data across businesses has driven auditors to embrace emerging technologies (Appelbaum et al, 2021). Examples of such emerging technologies include XBRL, which has provided a standardized global format for exchanging business information, and blockchain that has provided global data sharing and verification opportunities.…”

“…While there is a general requirement by auditing standards for auditors to know available technology‐based audit techniques, more specific guidance about which techniques should be learned and adopted by auditors is needed (Appelbaum et al, 2021). For example, the lack of explicit guidance on drones for audit can inhibit its adoption.…”

“…To our knowledge, we are among the first to conduct an extensive review of the growing academic literature on digital transformation in the external audit arena. Prior research offers conceptual frameworks (e.g., Appelbaum et al, 2021; Dai & Vasarhelyi, 2017) and thought pieces related to education (e.g., Vincent, Igou, et al, 2020; Vincent, Skjellum, et al, 2020). Notably, relatively few studies we identified were published in top tier (e.g., Financial Times 50 journals) or general interest journals.…”

Over kwaliteitsborging van datagedreven controlemethodologie

“…Verder is er aandacht voor data quality . Ook de upgrade van de vaardigheden van accountants wordt beschreven met de noodzaak van meer begrip van data, basale statistiekkennis en kennis van statistische data-analyses (Appelbaum et al 2021). Anderzijds wordt beschreven op welke aspecten het beroep nog een antwoord moet formuleren, zoals de wenselijkheid van de verschuiving van causaliteit in de controle naar meer (statistische) samenhang in de bewijsvoering vanwege toepassing van big data-analysetechnieken (Cao et al 2015).…”

Abnormal Behavior Detection of Students in the Examination Hall from Surveillance Videos

“…The visual information is provided by surveillance video which can be played back for the future references, or it can be viewed as live videos. The modern tendency of "automation" has its influence even in the domain of video analytic [3,4]. Video analytic can be used for a wide diversity of applications like person identification, abnormal activity recognition, motion detection, human behavior prediction, people counting at crowded places, and vehicle counting.…”