Data Analytic in Internal Auditing: A Scoping Review

Anne Marie Dushyirehamwe; Helianti Utami; Diana Tien Irafahmi

doi:10.54408/jabter.v4i1.334

Authors

Anne Marie Dushyirehamwe Universiatsi Negeri Malang
Helianti Utami Universitas Negeri Malang
Diana Tien Irafahmi Universitas Negeri Malang

DOI:

https://doi.org/10.54408/jabter.v4i1.334

Keywords:

data analytic, big data, internal auditing, review

Abstract

Technology has become a more significant component of internal and external audits, and rapid changes are occurring in auditing procedures to reflect developments in the business world. This study aims to review existing literature on Data Analytics in Internal Auditing. The research utilizes the scoping review method, which follows the protocol established by Arksey and O'Malley (2005). The investigation has 20 years of observation, from 2003 to 2023. Thirty-nine articles were selected from electronic databases: Sage Journals, Springer, Taylor & Francis, Wiley, Emerald Publish, and Science Direct. The mapping research demonstrates the growth of data analytics in internal auditing. Key findings indicate that data analytics offers numerous advantages for internal auditing, including improved risk identification, enhanced fraud detection, increased operational efficiency, and better decision-making support. However, significant challenges persist, including issues related to data quality, skills gaps, organizational resistance, and technological constraints, emphasizing its crucial role in improving internal audit effectiveness and efficiency and indicating which skills internal auditors need to gain knowledge about internal auditing technology. The Review concludes by identifying gaps in the literature and suggesting future research directions to further advance our understanding of data analytics in internal audits and its implications for organizational performance and compliance.

Downloads

Download data is not yet available.

References

Al-Taee, S. H. H., & Flayyih, H. H. (2023). Impact of the Electronic Internal Auditing Based on It Governance To Reduce Auditing Risk. Corporate Governance and Organizational Behavior Review, 7(1), 94–100. https://doi.org/10.22495/cgobrv7i1p9

Arksey, H., & O’Malley, L. (2005). Scoping Studies: Towards a Methodological Framework. International Journal of Social Research Methodology: Theory & Practice, 8(1), 19–32.https://doi.org/10.1080/1364557032000119616

Arksey, H., & O’Malley, L. (2013). Appendix 1 : Methodological Framework ( Arksey & O ’ Malley , 2005 ). 2013.

Betti, N., Sarens, G., & Poncin, I. (2021). Effects of digitalization of organisations on internal audit activities and practices. Managerial Auditing Journal, 36(6), 872–888. https://doi.org/10.1108/MAJ-08-2020-2792

Booker, D. D., Pelzer, J. R. E., & Richardson, J. R. (2023). Integrating data analytics into the auditing curriculum: Insights and perceptions from early-career auditors. Journal of Accounting Education, 64(December 2021), 100856.https://doi.org/10.1016/j.jaccedu.2023.100856

Brody, R. G., Golen, S. P., & Reckers, P. M. J. (1998). An empirical investigation of the interface between internal and external auditors. Accounting and Business Research, 28(3), 160–171. https://doi.org/10.1080/00014788.1998.9728907

Castanheira, N., Rodrigues, L. L., & Craig, R. (2010). Factors associated with the adoption of risk-based internal auditing. Managerial Auditing Journal, 25(1), 79–98. https://doi.org/10.1108/02686901011007315

Chen, X., Shang, T., Zhang, F., Liu, J., & Guan, Z. (2020). Dynamic data auditing scheme for big data storage. Frontiers of Computer Science, 14(1), 219–229. https://doi.org/10.1007/s11704-018-8117-6

Cornwell, N., Bilson, C., Gepp, A., Stern, S., & Vanstone, B. J. (2023). The role of data analytics within operational risk management: A systematic review from the financial services and energy sectors. Journal of the Operational Research Society, 74(1), 374–402. https://doi.org/10.1080/01605682.2022.2041373

De Santis and D’Onza. (2022). Big data and data analytics in auditing: in search of legitimacy. Managerial Auditing Journal.

De Santis, F., & D’Onza, G. (2020). Big data and data analytics in auditing: in search of legitimacy. Meditari Accountancy Research, 29(5), 1088–1112. https://doi.org/10.1108/MEDAR-03-2020-0838

Development, P. C. (2022). Journal of accounting and business education. Journal of Accounting and Business Education, 6(March), 41–53.

Eulerich, M., Masli, A., Pickerd, J., & Wood, D. A. (2023). The Impact of Audit Technology on Audit Task Outcomes: Evidence for Technology-Based Audit Techniques*. Contemporary Accounting Research, 40(2), 981–1012. https://doi.org/10.1111/1911-3846.12847

Gray, A. (2019). Body as voice: Restorative dance/movement psychotherapy with survivors of relational trauma. The Routledge International Handbook of Embodied Perspectives in Psychotherapy: Approaches from Dance Movement and Body Psychotherapies, 147–160. https://doi.org/10.4324/9781315159416

Green, S., & Weber, J. (1997). Influencing Ethical Development : Exposing Students to the AICPA Code of Conduct *. 1985, 777–790.

Hendra Poltak. (2019). Effectiveness of Internal Audit With Management. Internal Audit in Accounting, April, 34. https://doi.org/10.21275/ART20179790

Islam, S., & Stafford, T. (2022). Factors associated with the adoption of data analytics by internal audit function. In Managerial Auditing Journal (Vol. 37, Issue 2). https://doi.org/10.1108/MAJ-04-2021-3090

Joshi, P. L., Kanthi Herath, S., & Joshi, P. L. (2023). AUDIT DATA ANALYTICS: A Game Changer for Audit Firms. February. https://doi.org/10.47509/IJAAS.2023.v05i01.02

Lenning, J., & Gremyr, I. (2022). Unleashing the potential of internal audits: a review and research agenda. Total Quality Management and Business Excellence, 33(9–10), 994–1010. https://doi.org/10.1080/14783363.2021.1911635

Lenz, R., & Hoos, F. (2023). the Future Role of the Internal Audit Function: Assure. Build. Consult. Edpacs, 67(3), 39–52. https://doi.org/10.1080/07366981.2023.2165361

Munn, Z., Stern, C., Aromataris, E., Lockwood, C., & Jordan, Z. (2018). What kind of systematic review should i conduct? A proposed typology and guidance for systematic reviewers in the medical and health sciences. BMC Medical Research Methodology, 18(1), 1–9. https://doi.org/10.1186/s12874-017-0468-4

O’ Brien, W., Belton, S., & Issartel, J. (2016). Fundamental movement skill proficiency amongst adolescent youth. Physical Education and Sport Pedagogy, 21(6), 557–571. https://doi.org/10.1080/17408989.2015.1017451

Peters, M. D. J., Godfrey, C. M., Khalil, H., McInerney, P., Parker, D., & Soares, C. B. (2015). Guidance for conducting systematic scoping reviews. International Journal of Evidence-Based Healthcare, 13(3), 141–146. https://doi.org/10.1097/XEB.0000000000000050

Petridis, K., Drogalas, G., & Zografidou, E. (2021). Internal auditor selection using a TOPSIS/non-linear programming model. Annals of Operations Research, 296(1–2), 513–539. https://doi.org/10.1007/s10479-019-03307-x

Pham, M. T., Rajić, A., Greig, J. D., Sargeant, J. M., Papadopoulos, A., & Mcewen, S. A. (2014). A scoping review of scoping reviews: Advancing the approach and enhancing the consistency. Research Synthesis Methods, 5(4), 371–385. https://doi.org/10.1002/jrsm.1123

Pollock, D., Davies, E. L., Peters, M. D. J., Tricco, A. C., Alexander, L., McInerney, P., Godfrey, C. M., Khalil, H., & Munn, Z. (2021). Undertaking a scoping review: A practical guide for nursing and midwifery students, clinicians, researchers, and academics. Journal of Advanced Nursing, 77(4), 2102–2113. https://doi.org/10.1111/jan.14743

Ramamoorti, S. (2003). Chapter 1 Internal Auditing : History , Evolution , and Prospects. Research Opportunities in Internal Auditing, 1–23. https://na.theiia.org/iiarf/Public Documents/Chapter 1 Internal Auditing History Evolution and Prospects.pdf

Yang, M., Fu, M., & Zhang, Z. (2021). The adoption of digital technologies in supply chains: Drivers, process and impact. Technological Forecasting and Social Change, 169(January), 120795. https://doi.org/10.1016/j.techfore.2021.120795