Investigating the impact of adopting big data and data analytics on enhancing audit quality

PurposeThis study aims to empirically investigate the impact of adopting big data and data analytics (BD&A) on audit quality (AQ).Design/methodology/approachA questionnaire was distributed among audit practitioners working at audit firms in Egypt and 205 responses were collected. Partial least square structural equation modeling (PLS-SEM) was used to analyze and test research hypotheses.FindingsThe results reveal that BD&A has a direct significant positive effect on the audit process (AP) and auditor competence (AC). However, an insignificant impact of BD&A is found on audit fees (AF). In addition, the results indicate that BD&A has significant positive direct and indirect impacts on AQ.Research limitations/implicationsThe results of this study will benefit several auditing stakeholders, such as audit firms, audit regulators, novice financial auditors and academic scholars.Originality/valueThis research is one of the earliest to empirically address the role of BD&A in enhancing AQ. It incorporates AP, AC and AF as mediators into a single model to explain the impact of BD&A on AQ. Also, it attempts to provide empirical evidence from a developing country with a less-regulated audit environment.