To maintain public confidence in the financial system, it is essential that most financial fraud is prevented and that incidents of fraud are detected and punished. The responsibility of uncovering creatively implemented fraud is placed, in a large part, on auditors. Recent advancements in technology are helping auditors turn the tide against fraudsters. Big Data, made possible by the proliferation, widespread availability and amalgamation of diverse digital data sets, has become an important driver of technological change. Big Data analytics are already transforming the traditional audit. Sampling and testing a limited number of random samples has turned into a much more comprehensive audit that analyzes the entire population of transactions within an account, allowing auditors to flag and investigate all sorts of potentially fraudulent anomalies that were previously invisible. Artificial intelligence (AI) programs, typified by IBM’s Watson, can mimic the thought processes of the human mind and will soon be adopted by the auditing profession. Machine learning (ML) programs, with the ability to change when exposed to new data, are developing rapidly and may take over many of the decision-making functions currently performed by auditors. The SEC has already implemented pioneering fraud-detection software based on AI and ML programs. The evolution of the auditor’s role has already begun. Current accounting students must understand the traditional auditing skillset will not longer be sufficient. While facing a future with fewer auditing positions available due to increased automation, auditors will need training for roles that will be more data analytical and computer-science based.

Förutom standarder och riktlinjer utgör revisorns egna professionella bedömningar en stor del av hur denna bedömer väsentlighetsnivån vid en revision. Tidigare studier har funnit flertalet bakomliggande faktorer som påverkar denna bedömning. 2011 implementerades ISA i Sverige varför det finns ett intresse att undersöka vad denna standard har haft för påverkan på svenska revisorers väsentlighetsbedömning.  Studiens resultat visar att tre faktorer av de som ingår i studien kan förklara variationen i revisorers väsentlighetsbedömningar. Variablerna kön, chefspress och storlek på revisionsbyrå har i studien ett signifikant samband med variationen i bedömd väsentlighetsnivå. Att dessa olika faktorer har en påverkan på väsentlighetsbedömningen antas förklaras av bland annat olika nivåer av riskbenägenhet och revisionskvalitet. / Background: In addition to standards and guidelines, the auditor’s own professional judgment represents a big part of how the auditor assesses the materiality level for an audit. Previous studies have found a number of underlying factors that affects this assessment. In 2011, ISA was implemented in Sweden why there is an interest to investigate what impact this standard has had on the Swedish auditors' materiality judgments. Purpose: The purpose of this paper is to describe and explain the factors that affect the auditors’ professional judgment of the overall materiality level. Method: The study is based on a deductive approach where previous research in this areais used to formulate hypotheses regarding the factors that may affect auditors in their materiality judgment. Quantitative data is collected in the form of primary data through a survey. Furthermore, one experienced auditor is interviewed. Conclusion: The results show that the variables Gender, Pressure from management and Firm size can explain variations in different auditors' materiality judgments. These factors impact on the materiality assessment is assumed to be caused by, among other things, different levels of risk propensity and audit quality.

M.Com. (Computer Auditing) / This study investigates the effects of the implementation and upgrade of financial Enterprise Resource Planning (hereafter ERP) systems, particularly the Oracle system, on financial reporting and audit. It also determines whether the independent external auditors play a vital role in the process of implementing internal controls in the implementation and upgrade of the Oracle system at a higher education institution (hereafter HEI). With the ever-evolving information technology, it is of utmost importance that the necessary controls be implemented. A sample of 18 Oracle system users from the HEI finance expenditure department and HEI independent external auditors is surveyed and the results of the survey are used to provide advice to organisational management on measures that should be implemented to ensure smooth systems implementation and post-implementation results. The empirical study indicates that the HEI had adequate measures and controls in place to ensure that the ERP implementation runs smoothly and threats are avoided, resulting in a successful implementation for competitive advantage in HEI.

It is the purpose of this study to examine the underlying nature of the relative risk associated with an audit engagement.

This research examined the performance of three parametric methods for confidence intervals: the classical, the Bonferroni, and the bootstrap-t method, as applied to estimating the mean of voucher populations in accounting. Usually auditing populations do not follow standard models. The population for accounting audits generally is a nonstandard mixture distribution in which the audit data set contains a large number of zero values and a comparatively small number of nonzero errors. This study assumed a situation in which only overstatement errors exist. The nonzero errors were assumed to be normally, exponentially, and uniformly distributed. Five indicators of performance were used. The classical method was found to be unreliable. The Bonferroni method was conservative for all population conditions. The bootstrap-t method was excellent in terms of reliability, but the lower limit of the confidence intervals produced by this method was unstable for all population conditions. The classical method provided the shortest average width of the confidence intervals among the three methods. This study provided initial evidence as to how the parametric bootstrap-t method performs when applied to the nonstandard distribution of audit populations of line items. Further research should provide a reliable confidence interval for a wider variety of accounting populations.

This dissertation is a descriptive, exploratory examination of professional commitment, organizational commitment, and conflict between those commitments in the internal audit profession. That conflict has been suggested in prior studies as the source of dysfunctional outcomes such as increased role stress, high turnover, decreased job satisfaction, and the exercise of improper judgment leading to audit failures. The descriptive aspect of this study deals with the development of a more comprehensive structural model of the factors and relationships involved in commitment and conflict than has been developed by previous research dealing with accountants. The exploratory aspect deals with the testing and refinement of the developed model utilizing the internal audit profession as the field of examination. The model developed in this study is derived from the synthesis of factors suggested by role theory, the concept of side bets, the cosmopolitan-local construct, and the concept of commitment as a process. This research utilizes a questionnaire administered to 205 practicing internal auditors in order to test 30 hypothesized relationships. Path analysis is used to determine the significant direct relationships between variables with a process of theory trimming being conducted in order to produce more parsimonious structural models. Indirect relationships between significant variables are identified and their redundant or suppressive nature determined. Explanations of these suppressive or redundant relationships are provided based on the theoretical considerations identified above. Such a determination and explanation of the redundant and suppressive indirect relationships involved in the commitment-conflict relationship has not been accomplished in earlier studies of the subject. Although the procedures used here do not support causal conclusions, the findings of this study indirectly provide evidence that conflict between the two commitments in the internal audit area is not to be considered inherent. The findings also suggest a possible undesirable relationship between organizational formalization and professional commitment.

This research is motivated by the interest in understanding the usage of the Generalised Audit Software (GAS) by external auditors within public accounting firms. GAS is a tool used by auditors to automate various audit tasks. It helps auditors to analyse accounting data electronically where it is quite impossible to do so manually. GAS is claimed to be the most influential Computer Assisted Audit Tools and Technique (CAATTs) that can facilitate the audit objective. However, research has found that there is little evidence that auditors have extensively adopted GAS. Even greater benefits have been promoted since the existence of GAS, but auditors do not really seem to be interested in this tool. Most previous studies have focused on either internal auditors, large accounting firms, other countries or merely adopters of GAS. However, there is little evidence that the study of GAS has been conducted on external auditors, especially in small and medium sized accounting firms in the United Kingdom (UK). This study helps to fill this gap by exploring the use of GAS among them, and covers both adopters and non-adopters of GAS. Through an online survey using both close and open-ended questions, this issue has been investigated among registered statutory auditors. The primary aim of this study is to explore the current usage of GAS and to understand the factors that influence the use of GAS as well as the perceptions and expectations of using GAS. The views are gathered from both auditors who are already implementing GAS and those who are not using GAS. A framework was developed to identify a range of relevant factors which are important when considering the application of GAS. Responses from 205 statutory auditors across the UK were then mapped against the framework. Of the 14 variables used to test the factors that influence the use of GAS, only six of them are found to be significant from logistic regression analysis. These are firm size, experience of auditors in computerised auditing, organisational influence, client factor, audit engagement allocation and perceived usefulness. The findings show that the utilisations of GAS is unusually low among audit firms in the UK. Almost 73% of external auditors make no use of GAS, due to the limited perceived benefit of using GAS for auditing small clients. While some respondents recognised the advantages of GAS, they were put off by what they believed to be high implementation costs; the significant learning curve and adoption process; and lack of ease of use. Some auditors expressed their awareness of GAS, but most of them showed a preference for using traditional auditing methods instead. A few problems have also been identified in causing the limitation of GAS usage. This study contributes to the literature on suggestions to improve the use of GAS that can be used by small and medium sized public accounting firm, which is lacking in existing research related to this group. In sum, this study has deepened current understanding of the GAS usage among small and medium sized audit firms in the UK, and has provided useful insights for audit professionals, software developers, vendors, standards setters, academicians and researchers. This study has also opened up the possibilities for further study on GAS or related areas either in the UK or other places in the world.

M.Com. (Computer Auditing) / Competence in information technology (IT) is crucial for the professional accountants and most importantly, for information systems (IS) auditors currently practising in the execution of IS audits. The increasing dependence of businesses on computerised information systems gives rise to the need for auditors who possess IT knowledge and skills. This study reports the results of a study that investigates the level of IT knowledge and skills required for an IS auditor in the specific context of audit work in South Africa. Results of this study are based on a literature analysis and on data collected from different IS auditor practitioners. The aim of this study is to: (i) examine the IT knowledge and key areas of expertise required from an IS auditor; (ii) determine the educational qualifications required of an IS auditor; and (iii) evaluate the soft skills required from an IS auditor. This research involves a two-stage empirical study. Firstly, the study carried out a literature survey of IT knowledge and skills. Secondly, structured interviews were conducted with a sample of IS audit practitioners. The findings from this study make three main contributions to the field of IS auditing practice and auditing education. Firstly, the study will help in contributing to a theoretical enhancement of the current level of knowledge in the limited existing literature on IS auditors and the type of knowledge and skills that is required from the professionals to perform their duties effectively and add value to the organisation. Secondly, findings from this study are significant to the standards setters regulating the audit profession, academia designing university courses, and audit practitioners evaluating their own IT knowledge. An important contribution of this study is that the findings would initiate discussion, debate and action that would lead to positive changes in the South African IS auditing profession to ensure that IS auditors are on par with the latest technologies around the world.

M.Com. / Information and the IT systems that support it are important business assets. Their availability, integrity and confidentiality are essential to maintain an organisations competitive edge, cash flow, profitability, company image and compliance with legal requirements. Organisations world-wide are now facing increased security threats from a wide range of sources. Information systems may be the target of a range of serious threats including computer-based fraud, espionage, sabotage, vandalism and other sources of failure or disaster ...

M.Tech. / In this age of ever-increasing competition, organisations are facing unprecedented pressure to meet the combined obligations of showing returns to shareholders, and staying ahead of the competition. To meet these obligations, organisations have become increasingly dependent on technology, as an enabler. This dependency suggests that technology projects have become strategically more important than ever for organisations; yet the success of technology projects remains questionable. Furthermore, organisations do not have simple mechanisms to allow them to quickly and accurately trace the causes of IT project management failures. One of the causes of project management failures is the inability and/or unwillingness of project managers to adhere to project management best practices adopted by their organisations. This research proposes a simple and repeatable model to help organisations determine whether they are indeed following the project management best practices which they purport to follow. The research methods consisted firstly of a wide review of relevant literature on auditing, project management, and IT governance. Secondly, empirical data was collected and analysed. Thirdly, modelling was used to develop a conceptual model for auditing IT project management. The empirical study is based on a semi-structured interview, involving ten project managers in charge of IT projects. The findings from this research confirm that project managers do not adhere to project management best practices which they purport to follow. Consequently, this dissertation concludes that IT project managers must adhere to best practices adopted by their organisations, regardless of how impractical or inconvenient that may seem; the proposed model for auditing IT project management helps them achieve just that.