Factors associated with the adoption of data analytics by internal audit function

Abstract

Purpose The benefits of data analytics in the internal audit function (IAF) are clear; less is known about IAF adoption of analytics. The purpose of this study is to examine the factors driving IAF adoption of analytics. Design/methodology/approach The Common Body of Knowledge of Internal Auditing Database (IIA, 2015) provides auditor responses on key variables of analysis. Findings The results of this study indicate the most critical adoption factor is data-specific IT knowledge in the IAF. Critical thinking skills and business knowledge of chief audit executive (CAEs) also contribute to adoption. IAFs with fraud risk detection responsibly are more likely to adopt. IAFs in technologically advanced cultures are more likely to adopt analytics. Originality/value The results of this study document the critical factors driving adoption of audit analytics, benefitting both industry and research.

Implementation model of data analytics as a tool for improving internal audit processes

“…However, to achieve this improved process through the implementation of data analytics technology, a number of factors must be considered that will determine the success of the change (Islam and Stafford, 2021). Similarly, any process re-engineering through technology has to be approached according to certain phases (Hammer and Champy, 1994).…”

“…In today's business context, where all organisations generate large volumes of data continuously, it is particularly relevant to have a tool for processing this data (Islam and Stafford, 2021). Traditionally, this task Phase % of time over total audit time has been carried out manually and tediously.…”

“…But aside from their undeniable benefits, one cannot ignore the fact that their use and implementation entail several associated risks, both economic and technological, as well as human (Islam and Stafford, 2021). As far as technological risks are concerned, it is important to highlight the security of the information involved in the processing and management of data.…”

Elaboration of recommendations on the development of the state internal audit system when applying the digital technologies

“…This course of events requires that internal auditors acquire digital skills and enhance consulting capabilities so that this feature can help companies effectively manage the emerging risks. It is the factors contributing to the introduction of analytics of internal audit that are studied in [8]. At the same time, authors limit themselves to the study of the most critical factors including specific knowledge in the field of digitization, critical thinking skills, and business knowledge of the audit manager.…”

“…When summarizing the above studies on digitization of internal audit [3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19], it seems appropriate to identify certain limitations of the studied approaches to the development of a state internal audit in conditions of use of digital technologies:…”