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Audit Digitalization and Its Consequences on the Audit Expectation Gap: A Critical Perspective
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
2023 (English)In: Accounting Horizons, ISSN 0888-7993, E-ISSN 1558-7975, Vol. 37, no 1, p. 43-69Article in journal (Refereed) Published
Abstract [en]

This study examines how a paradigm shift from traditional to digital audits could affect the audit expectation gap. It uncovers possible new areas of the expectation gap and threats and challenges resulting from this paradigm shift. The findings suggest that audit digitalization will result in the audit profession transitioning from the defensive approach of educating users on auditors’ duties to a constructive approach of using digital tools to perform some of the duties that users expect of auditors. Specifically, digital technologies have the potential to enhance internal controls and facilitate fraud prevention and detection, thus narrowing the expectation gap in relation to these critical issues. It may further accelerate the elimination of future challenges and threats and the narrowing of future expectation gaps. The potential benefits of switching to the constructive approach are lower costs for audit firms, enhanced audit quality, and improved client perceptions of auditors. 

Place, publisher, year, edition, pages
American Accounting Association , 2023. Vol. 37, no 1, p. 43-69
Keywords [en]
audit expectation gap, digital technologies, fraud prevention and detection, internal control
National Category
Business Administration
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-94387DOI: 10.2308/HORIZONS-2021-027ISI: 000967599100004Scopus ID: 2-s2.0-85142256240OAI: oai:DiVA.org:kau-94387DiVA, id: diva2:1752272
Available from: 2023-04-21 Created: 2023-04-21 Last updated: 2023-05-08Bibliographically approved

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Fotoh, Lazarus EladLorentzon, Johan Ingemar

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CiteExportLink to record
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Citation style
  • apa
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  • vancouver
  • apa.csl
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  • de-DE
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Output format
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