Abstract

Purpose: The aim of the current study is two-fold. First, to investigate perceptions of audit professionals regarding the challenges of implementing conventional remote auditing, with a comparison between Big4 and non-Big4 audit firms. Second, to explore the relevant challenges of utilizing artificial intelligence (AI) in remote IT auditing.

Methodology and Design: A questionnaire survey was conducted with 208 external audit professionals to examine the challenges associated with traditional remote auditing. Given that AI-based remote IT auditing is an emerging practice, semi-structured interviews were conducted with 11 IT audit professionals to explore potential relevant challenges in its implementation.

Findings: Survey findings showed that creation a heavier workload for auditors and weak IT infrastructure is most challenging issues for conventional remote auditing related to audit firms. Serious challenges pertain to audit clients are un-cooperation and resistance, and lack of expertise and IT infrastructure. These challenges were more pronounced for non-big4 in comparison to big4 counterparts. The identified challenges of using AI in remote IT auditing include lack of suitable AI infrastructure and compatibility with client systems, data quality and accessibility. Impediments also encompass talent gaps, resistance to change, and communication barriers. Privacy and cybersecurity concerns, along with the readiness of clients, are the common environmental challenges.

Originality: This study contributes originality by examining barriers to remote auditing in an underexplored emerging market, comparing Big4 and non-Big4 firms. It also pioneers a
qualitative investigation into challenges of adopting AI in remote IT auditing, addressing a critical gap identified in prior research.

Implications: The findings enhance the ongoing discussion regarding digital transformation in auditing, especially for smaller audit firms in emerging economies, where limited resources frequently impede technological progress. Audit firms and audit clients can be informed regarding the relevant common hurdles of different forms of remote auditing, and thus they can initiate organizational change by implementing practical strategies to overcome them.