Abstract
External audit is undergoing rapid changes where more and more routine tasks are automated with analytics and artificial intelligence (AI) instruments. The paper addresses a research problem of mapping data analytics to audit tasks and develops a framework aligning audit phases and AI and using data analytics in teaching audit with AI. The paper contributes to the literature on using data analytics with AI in knowledge specific areas and particularly critical for emerging audit analytics, which is data analytics in external financial audit application. The paper employs the process model methodology (Wynn and Clarkson, Research in Engineering Design 29:161–202, 2018) and the hybrid approach of curriculum development (Dzuranin et al., Journal of Accounting Education 43:24–39, 2018). The framework is extended further by inclusion of knowledge areas and skills recommendations for each identified stage. This inclusion is linked to the peak accounting body guidelines to ensure compliance with course certification and future job prospects. The developed framework is implemented using audit management platform MindBridge AI. The developed teaching and learning materials show implementation of the framework on the practical level. The developed framework was evaluated in a focus group with accounting academics and industry professionals. Its implementation was evaluated in a series of workshops and a survey with participants.
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Data availability statement
The datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request.
Notes
University Alliance Program https://www.mindbridge.ai/initiatives/university-alliance-program/ is available for recognised tertiary institutions and provide free of charge access to the platform and educational material, including datasets. Currently, the program includes approximately 5,000 students from over 120 universities worldwide and comes with learning resources.
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Appendices
Appendix A. CPA Australia Technical competency areas and learning outcomes – except
TCA03 Audit and assurance
This competency covers the nature and the purpose of audit and assurance and the regulatory and professional environment in which it operates. The area includes an understanding of the role of auditing standards, and their application to the audit process.
TCA08 Quantitative methods
This competency area covers the basic collection, analysis and interpretation of business data.
TCA10 Information and communications technology
The information and communications technology (ICT) competence area covers the fundamentals of how ICT impacts on the organisation's environment and business model, analyses the data and information in such a manner as to enhance the efficiency and effectiveness of the business' operating systems and processes and its communication channels. ICT includes accounting information systems and their application to solve business problems. These are important elements in the initial development of accounting and business professionals.
TCA03: Audit and assurance – technical competency areas and learning outcomes
This topic covers the nature and purpose of audit and assurance and the regulatory and professional environment in which it operates. The area includes an understanding of the role of auditing standards, and their application to the audit process.
Learning outcomes
At a minimum, graduates are expected to be able to:
LO1 | In relation to auditing, explain the: • nature and purpose of auditing • legal and regulatory requirements relating to auditors, including auditor’s liability • professional requirements relating to auditors, including ethics and independence • role of auditing standards • objectives and phases involved in performing an audit of general-purpose financial statements |
LO2 | LO2 Apply International Standards on Auditing or other relevant auditing standards, laws, and regulations applicable to an audit of general-purpose financial statements – refer to TCA3 schedule 1 for guidance on suggested content |
LO3 | Assess the risks of material misstatement in the financial statements and consider the impact on the audit strategy |
LO4 | Apply quantitative methods that are used in audit engagements |
LO5 | Identify relevant audit evidence, including contradictory evidence, to inform judgments, make decisions and reach well-reasoned conclusions |
LO6 | Conclude whether sufficient and appropriate audit evidence has been obtained |
TCA08: Quantitative methods
This competence area covers the basic collection, analysis and interpretation of business data.
Learning outcomes
At a minimum, graduates are expected to be able to:
LO1 | Explain the role of statistical analysis for decision making |
LO2 | Apply commonly used quantitative methods and techniques to collect and analyse financial and non-financial data – refer to TCA8 schedule 1 for guidance on suggested content |
LO3 | Review statistical data including hypothesis testing |
LO4 | Interpret the results of data analysis |
TCA10: Information and communications technology (ICT)
This area covers the fundamentals of how ICT impacts on an organisation’s environment and business model, and how data and information can be analysed to enhance the efficiency and effectiveness of a business’ operating systems, processes and communication channels. ICT includes accounting information systems and their application to solve business problems. These are important elements in the initial development of accounting and business professionals.
Learning outcomes
At a minimum, graduates are expected to be able to:
LO1 | Explain the impact of ICT on an organisation’s environment and business model, and how it supports data analysis and decision making – refer to TCA10 schedule 1 for guidance on suggested content |
LO2 | Explain how ICT supports the identification, reporting, and management of risk in an organisation and how it can enhance the efficiency and effectiveness of an organisation’s systems and processes – refer to TCA10 schedule 2 for guidance on suggested content |
LO3 | Explain how ICT is used to analyse data and information – refer to TCA10 schedule 3 for guidance on suggested content |
LO4 | Explain how ICT is used to enhance the efficiency and effectiveness of communication – refer to TCA10 schedule 4 for guidance on suggested content |
LO5 | Analyse the adequacy of ICT processes and controls and identify the improvements that could be made to them – refer to TCA10 schedule 5 for guidance on suggested content |
Technical competency areas (TCA) content guidance schedules are provided in CPA Australia Professional accreditation guidelines Appendix 2: Technical competency areas and learning outcomes, available at https://www.cpaaustralia.com.au/become-a-cpa/academic-institution-support/professional-accreditation-guidelines/appendix-2-technical-competency-areas-and-learning-outcomes
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Prokofieva, M. Integrating data analytics in teaching audit with machine learning and artificial intelligence. Educ Inf Technol 28, 7317–7353 (2023). https://doi.org/10.1007/s10639-022-11474-x
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DOI: https://doi.org/10.1007/s10639-022-11474-x