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Critical issues of the audit expectation gap in the era of audit digitalisation
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School (from 2013).ORCID iD: 0000-0003-3181-7323
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Karlstad Business School (from 2013).ORCID iD: 0000-0002-4691-6327
2021 (English)In: 02 Accounting Information Systems (Including Topics about Technology in Accounting), Honolulu: University of Hawai'i Press, 2021Conference paper, Published paper (Refereed)
Abstract [en]

This study aims to conceptually examine how a paradigm shift from traditional audits to digital audits could impact critical and recurring issues of the expectation gap. The findings indicate that digital platforms such as data analytics systems supported by machine learning can facilitate the identification of anomalies in data which can be investigated manually by auditors. Also, big data can be used in the audit process to interrogate an entire population of journal entries, transactions, and unstructured data, enabling auditors to focus on transactions displaying unusual patterns identified through artificial intelligence. Furthermore, drones could equally facilitate stock counts, compliance, and the attainment of operational objectives. In a nutshell, existing extant literature and commentaries underscore the significance of these digital technologies in enhancing internal controls and facilitating fraud prevention and detection. This study further contributes to the extant literature by projecting new avenues where the expectation gap is likely to emerge due to a paradigm shift from traditional audits to digital audits, enabling the auditing profession to take pre-emptive measures to prevent the exacerbation of an already worsening trust and confidence in the audit profession by financial statement users.

Place, publisher, year, edition, pages
Honolulu: University of Hawai'i Press, 2021.
Keywords [en]
Audit Expectation gap, Fraud prevention and detection, Internal control, Digital technologies
National Category
Economics and Business
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-85967OAI: oai:DiVA.org:kau-85967DiVA, id: diva2:1594859
Conference
2021 Hawaii Accounting Research Conference, January 3-5, 2021
Available from: 2021-09-16 Created: 2021-09-16 Last updated: 2021-09-23Bibliographically approved

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No full text in DiVA

Other links

https://scholarspace.manoa.hawaii.edu/bitstream/10125/70482/HARC-2021_paper_64.pdf

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Fotoh, Lazarus EladLorentzon, Johan

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • apa.csl
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf