UMM Logo

Universitas Muhammadiyah Malang

Free Download Journals Directory

International Journal of Accounting Research

Digital Business Environment and Audit Quality

Joseph K Nwankpa*
Department of Computer Information Systems & Quantitative Methods, College of Business Administration, USA
Abstract :
The event of the global financial crisis is a stack reminder of the
importance of audit quality. As various stakeholders grapple with the
series of business failures and corporate scandals, the need to re-examine
the veracity of audit reports as well as the quality of these audit reports
has taking a center stage. Today’s business landscape is increasingly
seeing the emergence of new digital technologies like analytics, big data,
cloud, social media, mobile etc. Such digital technologies are reshaping
existing products, creating new products and services as well as turning
digital resources within organizations into a new revenue streams
[1-2]. These digital technologies are creating new audit landscape
requiring auditors to alter audit processes, controls and tests [3-4].
Navigating through the plethora of cross-functional technologies in a
vastly digital world is requiring a new breed of auditors. For instance,
cloud computing platforms allow enterprises to run business processes
through a network connection while eliminating the conventional IT
hardware and software infrastructure that supports these business
processes. Auditing in a cloud based enterprise presents various
unconventional audit-related risks that may impact on the internal
control system and overall audit quality. Risk-based assessment for
firms using cloud computing platforms is convoluted because the
technology infrastructure and control mechanisms are house and
managed outside the enterprise being audited. Cloud computing adds
additional layers into the audit procedures as auditors may have to
examine the cloud service provider, data center and in some cases third
party vendors to establish inherent risk and potential control risk.
Keywords :
Digital Business Environment and Audit Quality

Date Deposited : 31 Mar 2016 12:10

Last Modified : 31 Mar 2016 12:10

Official URL:

Volume 2, Number 1, December 2014

Full Text Original
Abstract : pdf doc