Auditors’ reliance on data analytics tools: The effects of client-level factors and audit firm instruction message

Note: Soon-Yeow may request the transfer of $2,500 later after the lead researcher bills the AFAANZ.

Data analytics (DA) significantly impacts the auditing profession by potentially making audits efficient and effective in gaining insights into client data. However, the reliance on DA in audits is slower than expected. This project experimentally examines factors that affect auditors' reliance on DA. First, this project examines whether auditor-client relationship affects the use of DA while also varying a client characteristic, client risk level. Second, this project examines if firm instruction message encourages the use of DA. We investigate these factors through the lens of the reactance theory that deals with the motivation of individuals to rely on new technologies.