DATA ANALYTICS AND AUDITING PRACTICES; THE KNOWLEDGE, ATTITUDE, AND PRACTICES OF AUDITING FIRMS IN NIGERIA

ABSTRACT

Data analytics in Auditing has been a thing globally and internationally for quite a while now. It is an essential tool for auditing financial statements, but in Nigeria, the adoption and use of data analytics tools are still in the early stages and implementation. This study examined Data Analytics and Auditing Practices; The Knowledge, Attitude, and Practices of Auditing Firms in Nigeria by employing a survey research design. The population of the study comprises 300 registered Accounting firms with ICAN in Lagos state; a sample size of 75 firms was selected using purposive sampling. Data was collected through a well-structured questionnaire administered electronically. Descriptive analysis and regression analysis were used to analyze the data using SPSS 29.0 and the results indicated that there is a high level of awareness/knowledge of data analytics among auditing firms in Nigeria. Also, Auditing firms are more receptive to adopting data analytics in their audit practices in Nigeria. The Big Four Accounting/Auditing firms were already incorporating data analytics in their audit practices and they have a well working system and environment for data analytics to work, while other small/medium sized/non-big Four accounting firms are gradually transitioning into a more data-driven approach in their audit processes though a majority of them are still in their early stage of awareness and adoption. The study concluded that the use of data analytics tools should be encouraged by the accounting/auditing professional body. The study recommends that training, capacity building, and awareness campaigns should be encouraged for these accounting firms to see the potential and benefits of DA in their audit processes and engagements. xi