Open AccessPotential threats for the auditing profession, audit firms and audit processes inherent in using emerging technology
Author(s) -
Dale McGregor,
Riley Carpenter
Publication year - 2020
Publication title -
the business and management review
Language(s) - English
Resource type - Journals
eISSN - 2047-2862
pISSN - 2047-2854
DOI - 10.24052/bmr/v11nu02/art-06
Subject(s) - audit , business , information technology audit , audit plan , accounting , quality (philosophy) , judgement , quality audit , emerging technologies , economic shortage , information security audit , internal audit , joint audit , computer security , computer science , information security , government (linguistics) , political science , network security policy , philosophy , epistemology , artificial intelligence , security service , law , linguistics
The audit profession currently faces several challenges to improve audit quality and efficiency. In response to these challenges, audit firms have invested considerably in implementing emerging technology. Although technological innovation may improve efficiency and effectiveness of operations, using these technologies creates several threats, which, if not adequately addressed by auditors, may harm audit quality, efficiency, and the professional development of the auditor. This paper performs a qualitative analysis of prior literature regarding the threats created by audit firms implementing emerging technology. These threats include concerns related to the integrity and security of data inputs, the auditor placing too much reliance on technology to the detriment of their professional development and exercise of professional judgement, a shortage of skills, the costs of technology implementation, disruptions to the status quo of the audit profession and auditing standards potentially being outdated. This paper adds value firstly by helping to determine how technology impacts the future of the auditing profession and secondly, by helping firms determine whether to invest in new technologies by providing a comprehensive overview of the threats resulting from such a decision.