Disruptive technology and audit risks: Evidence from FTSE 100 companies

<p>We investigate the use of disruptive technology on the level of audit risk, within both companies and audit firms. A sample of FTSE 100 and their corresponding audit firms—specifically, the ‘Big 4’—are selected for the period 2015 to 2020. Our findings indicate that the utilisation of disru...

Full description

Saved in:
Bibliographic Details
Main Author: Marwa Elnahass (20074635) (author)
Other Authors: Xinrui Jia (9734161) (author), Louise Crawford (21393455) (author)
Published: 2024
Subjects:
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:<p>We investigate the use of disruptive technology on the level of audit risk, within both companies and audit firms. A sample of FTSE 100 and their corresponding audit firms—specifically, the ‘Big 4’—are selected for the period 2015 to 2020. Our findings indicate that the utilisation of disruptive technology results in a significant reduction in audit risk for both companies and audit firms. Disruptive technology seems to promote benefits to companies and audit firms by significantly mitigating the risk of material misstatements (i.e. inherent and control risk) and detection risk; these results are consistent across various industry classifications.</p><h2>Other Information</h2> <p> Published in: Emerging Markets Review<br> License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1016/j.ememar.2024.101218" target="_blank">https://dx.doi.org/10.1016/j.ememar.2024.101218</a></p>