Skip to main content
Article
Information Technology in an Audit Context: Have the Big 4 Lost Their Advantage?
Journal of Information Systems
  • D. Jordan Lowe, Arizona State University
  • James L. Bierstaker, Villanova University
  • Diane J. Janvrin, Iowa State University
  • J. Gregory Jenkins, Virginia Polytechnic Institute and State University
Document Type
Article
Publication Version
Accepted Manuscript
Publication Date
1-1-2017
DOI
10.2308/isys-51794
Abstract

Audit firms use information technology (IT) to improve audit quality, effectiveness, and efficiency. While audit IT has evolved over the past decade, limited guidance is available to assist practitioners in determining how IT can be used. Our research objectives are fourfold. First, we examine to what extent auditors use and assess the perceived importance of IT in their audits. Second, we look at different-sized firms to determine whether IT adoption and implementation decisions differ by firm size. Third, we investigate changes in auditors' use and perceived importance of IT over the past decade. Fourth, we examine whether IT has impacted the communication modes used by auditors when reviewing workpapers and fraud brainstorming. Overall, Big 4 auditors were not significantly more likely to use IT than non-Big 4 auditors, suggesting that the dominance of the Big 4 firms' use of IT has lessened. In fact, there are a few applications where non-Big 4 auditors appear to have taken the lead. In addition, our findings indicate that auditors have increased the use of all the IT applications we examined ten years ago. However, we find evidence that auditors may prefer to use even more IT in their audits than they are currently using.

Comments

This accepted article is published as Lowe, J., J. Bierstaker, D. Janvrin, and G. Jenkins. 2018. Information Technology in an Audit Context: Have the Big 4 Lost Their Advantage? Journal of Information Systems 32 (1): 87-107. DOI: 10.2308/isys-51794 Posted with permission.

Copyright Owner
AAA Accounting Information Systems
Language
en
File Format
application/pdf
Citation Information
D. Jordan Lowe, James L. Bierstaker, Diane J. Janvrin and J. Gregory Jenkins. "Information Technology in an Audit Context: Have the Big 4 Lost Their Advantage?" Journal of Information Systems Vol. 32 Iss. 1 (2017) p. 87 - 107
Available at: http://works.bepress.com/diane_janvrin/18/