Implications of Big data and data analytics for external audit : a qualitative study

Abstract

Over the last decades, the world has experienced the digitalization of many of its activity domains. With the vast amounts of structured and unstructured data now available, evolving at an unprecedented pace, how to derive value from data has become a significant concern of many disciplines, also reaching the audit profession. Given the increasing recognition of Big Data and Data Analytics in the context of the audit of financial statements, lacking empirical insights, this qualitative study explores their implications in the setting of Belgian and Luxembourgish audit firms. Drawing on relevant information stemmed from the existing literature, and 14 interviews with audit professionals having significant experience in the area of interest, the level of implementation of Big Data and Data Analytics, the legitimacy of the regulatory framework as well as the potential impact of newer technologies on the future of the profession have been assessed.