Abstract
The audit profession has a history of changing audit methodologies and technologies to address issues of legitimacy and regulatory and other concerns about the quality of audits. This study contends that changes in audit methodologies could be viewed as means through which auditors (re-)constitute their identities to reflect the prevalent discourse and expectations at the time. To explore the means through which auditors’ identity is constructed and its effects, this study examines Big Data and Analytics (BDA), the audit technology which large audit firms are stating that is now transforming the way audits are conducted. Using identity regulation and identity work from Alvesson and Willmott (2002)’s triad framework for identity construction, the study explores the discursive practices which large audit firms are using to embed BDA in the conduct of the audit. The objective is to explore the implications these practices may have on audit firms in developing economic as they attempt to keep pace with audit firms in developed economies in delivering quality audits.
Based on the evidence from semi-structured interviews with individuals interacting with BDA in large audit firms in the UK, observations of audit firms’ proprietary BDA tools and publicly available documentation from the same firms, the study finds that audit firms are pursuing efforts to regulate auditors’ identity by targeting individuals within the firms. The audit firms use discursive strategies aimed at ‘winning hearts and minds’ of auditors at all levels of the firms’ hierarchy. Further, audit firms employ means and messages to encourage auditors to show commitment in using BDA during audits. This is evidenced in means such as recruitment patterns, capacity building, incentives and personal. However, the process is not unproblematic because auditors have shown reluctance to using BDA and have devised ways of overcoming the concerns associated with using BDA in areas of the audit where professional judgements are required.
Based on the evidence from semi-structured interviews with individuals interacting with BDA in large audit firms in the UK, observations of audit firms’ proprietary BDA tools and publicly available documentation from the same firms, the study finds that audit firms are pursuing efforts to regulate auditors’ identity by targeting individuals within the firms. The audit firms use discursive strategies aimed at ‘winning hearts and minds’ of auditors at all levels of the firms’ hierarchy. Further, audit firms employ means and messages to encourage auditors to show commitment in using BDA during audits. This is evidenced in means such as recruitment patterns, capacity building, incentives and personal. However, the process is not unproblematic because auditors have shown reluctance to using BDA and have devised ways of overcoming the concerns associated with using BDA in areas of the audit where professional judgements are required.
| Original language | English |
|---|---|
| Publication status | Unpublished - 4 Sept 2024 |
| Event | Building a Sustainable Africa: Role of Accounting, Finance, and Governance: AFRICAN ACCOUNTING AND FINANCE CONFERENCE - Duration: 3 Sept 2024 → 6 Sept 2024 Conference number: 13 |
Conference
| Conference | Building a Sustainable Africa: Role of Accounting, Finance, and Governance |
|---|---|
| Abbreviated title | AAFA |
| Period | 3/09/24 → 6/09/24 |