An Exploratory Study into the Use of Audit Data Analytics on Audit Engagements

This study explores the use of audit data analytics (ADA) in current audit practice. First, weinterviewed the heads of professional practice of five international public accounting firms inNorway. We find that they differ in strategies on how to implement ADA and the heads reportsignificant uncertainty about the supervisory inspection authorities' response to the use of ADA.Second, we administered a questionnaire to 216 engagement partners and managers about theirperceptions of ADA as well as their actual ADA use on 109 audit engagements. Overall, theattitudes towards ADA usefulness are positive. Analysis of the audit engagements suggests useof ADA is relatively limited and use of more “advanced” ADA is rare. More ADA are used forclients with integrated ERP/IT systems and for newly tendered audit engagements. We alsoprovide details of actual ADA use on each phase of the audit. We discuss our findings from aninstitutional theory perspective