Impact of Data Mining, Big Data Analytics and Data Visualization on Audit Quality

Abstract

The existence of various financial statement scandals has made users of financial statements doubt the quality of the audit and demand auditor to provide an audit with better audit quality. Currently, the level of difficulty to meet these demands is becoming higher as the client's business becomes more complex. Information and data provided by clients are also increasingly diverse, including various kinds of electronic information and data. Thus, currently auditors must use a data-driven approach. Therefore, based on this phenomenon, we as researchers want to examine the effect of data processing technology on audit quality. We gathered primary data from external auditors through questionnaire to obtain empirical data that can verify our research model. As the results, we found that data mining and data visualization significantly affect big data analytics. While data mining, big data analytics, and data visualization do not significantly affect audit quality. These results are based on our sample which is external auditors in Indonesia. This research can be used as a reference for further study development. Future researchers can also conduct the same research in developed country.