New Technology Audit Techniques on Firm’s Performance: In Selected Firms Oyo State.
Publication Date: 04/09/2024
Author(s): Ransomed Temitayo Modupeoluwa, Obafemi Tunde Olutokunboh (Ph.D.).
Volume/Issue: Volume 7 , Issue 3 (2024)
Abstract:
The globe has seen an exponential rise in technical innovation in the last ten years. As a result of technological advancements in computing, which built on the foundations laid by the digital systems created during the Third Industrial Revolution, computers are now able to manipulate and analyze data more quickly and easily, opening up new applications for emerging technologies (Beata, 2018; Schwab, 2016; Veerankutty et al., 2018). When used in a commercial setting, these cutting-edge technologies could increase productivity and effectiveness (Beata, 2018; Schwab, 2016; Veerankutty et al., 2018). In order to provide an assurance service that meets their clients' expectations and to enable them to appropriately address the risks associated with their clients' use of more complex technology, auditors will need to adopt these emerging technologies as more businesses use increasingly sophisticated technology (Alles, 2015; Appelbaum et al., 2017). Many audit firms have turned to emerging technologies to improve audit quality and efficiency in the face of pressures facing the audit profession to improve the quality of its services (Botic, 2018; Harris, 2016) and reduce audit fees (Asthana et al., 2018) despite resource and time constraints (Persellin et al., 2019; Ferguson, 2016; Persellin et al., 2019). The use of new technology audit methodologies has become a crucial tactic for companies looking to improve performance, reduce risks, and stay competitive in the quickly changing business landscape of today (Niaz, 2022). Technology is changing the audit profession, and in order to increase audit quality, efficiency, and effectiveness, businesses are increasingly using cutting-edge technologies and procedures (Lugli & Bertacchini, 2023). The potential for reinventing traditional audit procedures through the integration of new technology audit methodologies lies in the ability for organizations to adjust to shifting stakeholder expectations, regulatory requirements, and market dynamics. The effective integration of new methodologies into organizations' current audit practices poses both opportunities and problems, notwithstanding the potential advantages of technology-driven audit projects (Perdana, Lee & Kim, 2023). A number of obstacles, including technological complexity, talent gaps, resource limitations, and opposition to change, have been faced by some organizations that have adopted technology-driven audit solutions in an attempt to improve data analytics capabilities, expedite procedures, and fortify internal controls. Against this backdrop, this study aims to explore the integration of new technology audit techniques and its implications for firms' performance. By examining the challenges, opportunities, and outcomes associated with technology-driven audit initiatives
