Auditing and Information Technology: Current Practice and Challenges

Professional auditing standards suggest that auditors adopt computer-assisted audit tools and techniques (CAATTs) to stay on top of the challenges presented by changes to the use of information and communication technologies (ICT) in the business and financial arenas. Audit professionals are also advised to be aware of the potentially enhanced risks and impact of ICT. It appears, however, as if neither the digital revolution, having the potential to facilitate a more frequent reporting and auditing model and to increase efficiency and effectiveness of audit engagements, nor the recent regulatory efforts to promote ICT usage, have had much effect, as empirical research suggests that the traditional audit model still generally prevails. This essay aims to provide some perspectives on recent developments, to assess where we stand now in terms of where we have come from and where we might be going. It also seeks to identify research opportunities and challenges that might stimulate further research and support changes in professional practice and auditing education.