IT Knowledge Requirements of an External Auditor

Abstract

The growing use of Information Technology (IT) systems in businesses necessitates the hiring of auditors who have IT knowledge and abilities. An external auditor’s competence in IT ensures that the audit is run professionally and effectively. Consequently, the objective of this study was to ascertain the current state of IT knowledge among external auditors. This study followed a quantitative descriptive research design. Data was collected using a questionnaire, and analysed using descriptive statistics. A total of 62 external auditors from three small to medium-sized audit firms completed the questionnaire. The results reported in the study show that the respondents believed that the IT proficiency of external auditors is currently low, including the identification of IT technologies (cognitive technologies, data analytics, smart digital platforms, and blockchain systems) that are growing in importance for external auditors. The results of this study are important, as they provide insight into the perspectives of external auditors with regards to their IT knowledge and skill when conducting audits. As such, a number of recommendations are provided to audit firms, regulators, and professional accounting bodies.
 
 Received: 21 January 2023 / Accepted: 13 May 2023 / Published: 5 July 2023

The Impacts of Characteristics of Hometown Connectedness Between Auditors and Executives on Audit Quality: Evidence From China

“…The former mainly depends on the auditors' study and practice experience and is unaffected by personal relationships. Because the pattern of personal relationships determines the pattern of interpersonal information communication and trust, information acquisition ability is affected by personal relationships (Dai, Xiao, & Pan, 2016;Mahlangu & Moosa, 2023). According to some former studies, although auditors who have hometown connectedness with managers can theoretically obtain more additional information, therefore have a greater probability of finding errors in financial reports.…”