Impact of Data Analytics and Consulting Activities on Internal Audit Quality

This research examines how the use of data analytics and consulting activities affect perceived internal audit quality. The study investigates the relationship between these factors and top management's perception of internal audit quality. Through online scenario-based experiments with middle and top managers, the study aims to shed light on the impact of data analytics and consulting activities on internal audit quality. The hypotheses suggest that internal auditors utilizing data analytics and engaging in consulting activities can lead to higher perceived internal audit quality.

• Data Analytics
• Consulting Activities
• Internal Audit Quality
• Research
• Management

ellierose Follow

Uploaded on Jul 23, 2024 | 2 Views

Download Presentation

Please find below an Image/Link to download the presentation.

The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.

Presentation Transcript

1. The impacts of the use of data analytics and the performance of consulting activities on perceived internal audit quality Nathana l Betti, UCLouvain, Belgium Steven DeSimone, College of the Holy Cross, USA Joy Gray, Bentley University, USA Ingrid Poncin, UCLouvain, Belgium July 29, 2021

2. Research context Business environment increasingly digitalized Organizations adapt their business models, strategies, and processes IT risks gain in importance Integration of new technologies Internal audit function Debate on the performance of consulting activities Objectivity? Integration of data analytics

3. Research objective Investigate the effects of the use of data analytics and the performance of consulting activities on top management s perceived internal audit quality.

4. Background Internal audit quality framework (Trotman and Duncan, 2018) Input Process Output Outcome - Technical skills - Experience - Objectivity - Soft skills - Technical production - Service interactions - Reports - Relevant recommendations - Value-add + + + Contextual factors Culture Management training ground Access to staff Digitalisation /use of data analytics

5. Hypotheses H1: Perceived internal audit quality will be higher when internal auditors use data analytics. H2: Perceived internal audit quality will be higher when internal auditors perform consulting activities. H3: When internal auditors perform consulting activities, perceived internal audit quality will be higher when internal auditors use data analytics.

6. Methodology Research design: Online scenario-based experiments 120 middle and top managers in the US 2X2 between-subjects experiment Manipulation 1: Use or not of data analytics Condition 1 - 100% assurance, 0% consulting - Analyses based on samples Condition 2 - 100% assurance, 0% consulting - Analyses of full data sets Manipulation 2: Performance or not of consulting activities Condition 3 - 50% assurance, 50% consulting - Analyses based on samples Condition 4 - 50% assurance, 50% consulting - Analyses of full data sets

7. Methodology Section 1 General context and information about the fictional company Internal audit department Condition 2: Yes Consulting Internal audit department Condition 1: No Consulting Section 2 OR Section 3a General internal audit program Internal audit work Condition 2: Yes Data Analytics Internal audit work Condition 1: No Data Analytics OR Section 3b Section 4 Questions

8. Results H1 supported regarding the input dimension Perceived competence higher when internal auditors use data analytics H2 supported regarding the process and output dimensions When internal auditors perform consulting activities: quality of the relationship between internal auditors and management is higher perceived relevance of internal auditors recommendations is higher

9. Results H3 supported regarding the process dimension Interaction effect between consulting activities and data analytics on the perceived quality of the relationship between internal auditors and management

10. Discussion 1. Data analytics increases the perceived competence of internal auditors 2. Consulting activities increase the perceived relevance of recommendations increase the quality of the relationship with management... ... but without influencing the perceived objectivity 3. Data analytics combined with consulting activities could improve management's perception of IA quality

11. Thank you for your attention! Questions?