Kend, M., & Nguyen, L. A. (2020). Big data analytics and other emerging technologies: the impact on the Australian audit and assurance profession. Flashcards
What is the main goal of Kend & Nguyen’s (2020) study?
To explore the impact of Big Data Analytics (BDA), AI, robotics, and blockchain on the Australian audit and assurance profession, using insights from experienced stakeholders.
How is BDA affecting the role of auditors?
BDA reduces manual, repetitive tasks, allowing auditors to focus on critical thinking and key judgments.
What is one key benefit of using BDA in audits?
Enables testing of entire populations, not just samples, leading to greater audit assurance.
What are the main benefits of AI, robotics, and BDA in audit settings?
- Analyze 100% of transactions, not just samples
- Improve accuracy, timeliness, and consistency
- Reduce human error and bias
- Spend more time on higher-value tasks like risk evaluation
- Align better with tech-savvy clients’ expectations
What role is BDA playing in modern auditing practices?
BDA is transforming auditing by moving auditors away from manual, repetitive tasks and enabling more focus on critical thinking and judgment-based work. It allows for full-population testing, improving audit quality and efficiency. BDA is seen as a positive innovation by most participants, though its adoption is still in the early stages on the diffusion of innovation curve
What is one major barrier for smaller audit firms in adopting emerging technologies?
The high cost of implementing tools like BDA, AI, and robotics. This creates a competitive disadvantage for smaller firms and risks further audit market concentration in favor of the Big 4.
How can automation and AI increase workload in the short term?
Although meant to reduce effort, these tools often create more work during initial implementation. Auditors must manually verify outputs and adapt to new systems, making automation painful and resource-intensive at first.
What challenge do regulators and standard setters face?
They are struggling to keep up with the pace of technological change. Slow standard-setting processes risk becoming a barrier to innovation in the audit profession
