Lessons from leveraging technology in auditing during COVID-19: an emerging economy perspective

Abstract

Purpose This study aims to examine the challenges posed by COVID-19 restrictions for audit processes in India and explore the perceptions of the profession on how technology was leveraged to conduct audits during this period. The opinions of auditors on future changes in post-COVID-19 audit practices and processes are also explored. Design/methodology/approach Semi-structured interviews were conducted with senior auditors working in various audit firms in major business centers in India and subjected to content and thematic analysis using the institutional theory perspective. Findings The auditing profession used technology to respond to COVID-19-imposed disruptions of established audit process and practices while maintaining the legitimacy of audit reports. The findings indicate that auditors now seem to strongly support the integration of emerging technologies into their auditing practices post-COVID to ensure data accuracy and transparency. The interviewees displayed keen interest in continuing remote and in-person audits to maintain audit quality in the future. The experience of COVID-19 appears to have forced the auditing profession to overcome their reluctance to adopt technologies that were previously used by only Big 4 and large audit companies. Practical implications The results will be of particular interest to various stakeholders concerned with aspects of the acceptance of technology-assisted audit reports such as legitimacy, required infrastructure, cost involvement and resistance to change. The findings will also assist professional bodies and policymakers in both developed and developing economies in devising useful strategies to promote technology-aided auditing during and after COVID-19. Limitations posed by inadequate infrastructure and resistance to changes must be overcomed before implementation of technology-aided audits. Originality/value As COVID-19 pandemic is a recent phenomenon, to the best of the authors’ knowledge, this study is one of the first few studies that have examined the use of technology to facilitate audits during the COVID-19 period, more specifically from a developing economy perspective.

Proceedings of the 9th International Scientific Conference - FINIZ 2022

“…Authors Nezhyva & Miniailo (2020) claimed in their work that the technological integration of audit based on modern information systems increases the efficiency of defined audit procedures and approaches. The results of authors' research Sharma, Sharma, Joshi, & Sharma (2022) show that auditors have shown great interest in using remote auditing in the future.…”

Industry Revolution 4.0: Rapid Growth of Technology May Affect Job Security in Auditing Profession: A Concept Paper

“…The current emerging technology of IR 4.0 in an organisation has significantly impacted the auditing profession. The technology-aided audit procedures have reduced auditors' time spent on clerical tasks, allowing them to devote more time to riskier, more judgementintensive areas and potentially boosting audit quality (Sharma et al, 2022). The professional auditors' skills on information technologies (IT) are increasingly important to ensure the integrity of automated systems can be maintained.…”

“…The professional auditors' skills on information technologies (IT) are increasingly important to ensure the integrity of automated systems can be maintained. According to Sharma et al (2022), previous studies on remote auditing have found that the auditing process will be efficient and effective because of technology.…”

Guest editorial: The COVID-19 pandemic: a catalyst for digital transformation

“…The paper “ Lessons from leveraging technology in auditing during Covid-19: an emerging economy perspective ” by Sharma et al (2022) examines the challenges posed by Covid-19 restrictions for audit processes in India. Emerging Technologies were used by the auditing profession to respond to imposed disruption of established audit process and practices to ensure data accuracy and transparency and enhanced audit quality.…”