Application of Data Analytics and Big Data in financial auditing- the promises and challenges for auditing firms

Abstract

 Big data and Data analytics are prompt topics in a lot of fields today. Enterprises with strong development strategies such as economic groups, big companies are interested in developing and applying them to their operating processes, and the field of auditing is no exception. However, to apply them into operational practice, it is necessary to carefully consider and evaluate the positive benefits and potential limitations of Big Data and Data Analytics. In the article, the author has studied, synthesized, analyzed and presented some key characteristics of the application of data analytics and big data in financial statement audits, and presented promising benefits and some significant challenges for firms to apply. Through that, the author also mentioned the solutions that can overcome these limitations when applying data analytics and big data to auditing firms, in order to capture the opportunities, the developments which they bring to modern audit.