Factors associated with the adoption of data analytics by internal audit function

Abstract

Purpose The benefits of data analytics in the internal audit function (IAF) are clear; less is known about IAF adoption of analytics. The purpose of this study is to examine the factors driving IAF adoption of analytics. Design/methodology/approach The Common Body of Knowledge of Internal Auditing Database (IIA, 2015) provides auditor responses on key variables of analysis. Findings The results of this study indicate the most critical adoption factor is data-specific IT knowledge in the IAF. Critical thinking skills and business knowledge of chief audit executive (CAEs) also contribute to adoption. IAFs with fraud risk detection responsibly are more likely to adopt. IAFs in technologically advanced cultures are more likely to adopt analytics. Originality/value The results of this study document the critical factors driving adoption of audit analytics, benefitting both industry and research.