USING BIG DATA IN AUDITING: OPPORTUNITIES AND CHALLENGES IN ENHANCING THE EFFECTIVENESS OF FINANCIAL AUDITING

Ali Abdulkareem Hadi

doi:10.61796/ijecep.v3i1.98

Authors

Ali Abdulkareem Hadi
[email protected]
Imam Alkadhim University College (IKU), Iraq

Vol. 3 No. 1 (2026): Journal of Economics and Economic Policy

Articles

January 26, 2026

Downloads

VIEW ARTICLE

Abstract
How to Cite
Metrics
References
License

Objective: This research aims to assess the impact of big data on enhancing the effectiveness of financial auditing, with a particular focus on the challenges and opportunities facing regulatory bodies and accounting institutions in the government sector. The research highlights its importance in light of the research gap resulting from the concentration of most leading academic studies on the private sector context. Method: The research relied on an analytical approach to analyze the conceptual framework and global trends in the use of big data in auditing, and also used an applied/descriptive approach (the actual applied approach is mentioned here: e.g., case study or questionnaire analysis) to study the target sample in Iraq. Results:
The main findings showed that the use of big data significantly contributes to improving the quality and efficiency of financial auditing by enabling auditors to conduct a comprehensive analysis of all transactions (continuous auditing) rather than relying on samples, thereby enhancing the ability of regulatory agencies to proactively detect risks and fraud. However, the results indicated an essential structural and technical problems, notably on the outdated infrastructure and the dire need for training human personnel. There is also the need to protect government’s sensitive data as it will be integrated into big technology. Novelty: The study commends that regulatory bodies should develop a dynamic governance model that will balance the maximum chances provided by the big data in consonance with cybersecurity demands. It also suggests the adoption of AI-inclined analytic audit model to improve the efficacy of financial procedure.

Hadi, A. A. (2026). USING BIG DATA IN AUDITING: OPPORTUNITIES AND CHALLENGES IN ENHANCING THE EFFECTIVENESS OF FINANCIAL AUDITING. Journal of Economic and Economic Policy, 3(1), 143–167. https://doi.org/10.61796/ijecep.v3i1.98

Download Citation

[1] Sorbonne Academy, “The importance of financial auditing: Ensuring financial integrity.” [Online]. Available: https://sorbonnetraining.com/blog-details

[2] H. Brown-Liburd and M. A. Vasarhelyi, Eds., Auditing and Assurance: Analytics in the World of Big Data. Hoboken, NJ: Wiley, 2015.

[3] K. Yoon, L. Hoogduin, and L. Zhang, “Big data as a complementary audit evidence,” in Proceedings of the American Conference on Information Systems, 2015, pp. 1–14.

[4] D. Appelbaum, A. Kogan, and M. A. Vasarhelyi, “Big data and analytics in modern auditing tasks: Research needs,” Auditing: A Journal of Practice and Theory, vol. 36, no. 4, pp. 1–27, 2017.

[5] M. G. Alles, “Motivations for using big data and factors facilitating and developing its use by the auditing profession,” Accounting Horizons, vol. 29, no. 2, pp. 439–449, 2015.

[6] J. Anderson, “The role of AI in auditing,” in Proceedings of the International Conference on Accounting and Finance, Cambridge University Press, 2020, pp. 102–115.

[7] H. Chen, R. H. L. Chiang, and V. C. Storey, “Business intelligence and analytics: From big data to big impact,” MIS Quarterly, vol. 36, no. 4, pp. 1165–1188, 2012.

[8] S. C. Albright and W. L. Winston, Business Analytics: Data Analysis and Decision Making, 6th ed. Cengage Learning, 2021.

[9] M. Ezzat, “The relationship between the use of big data technology and the financial performance of companies,” Journal of Accounting and Auditing of the Arab Universities Union, vol. 1, pp. 400–405, 2021.

[10] H. S. Al-Masrawi, “The role of internal auditors in the era of big data,” in Proceedings of the Arab International Conference on Information Technology, Cairo, Egypt, 2018, pp. 233–245.

[11] H. M. Al-Shatnawi, “The impact of big data analysis on improving the quality of financial reports: The mediating role of IT governance (COBIT),” Journal of Humanities and Natural Sciences, vol. 3, no. 7, pp. 1–15, 2021.

[12] Coursera and edX, “Big Data and Machine Learning for Auditing,” 2024.

[13] S. Smith, “From Inclusive Spaces to Inclusionary Texts: How E-Participation Can Help Overcome Social Exclusion,” in Handbook of Research on Overcoming Digital Divides, IGI Global, 2010, pp. 533–548. doi: 10.4018/978-1-60566-699-0.ch029.

[14] M. Al-Amaida, “Big data analytics and its role in reducing accounting fraud from the perspective of Jordanian certified public accountants,” Journal of Humanities and Natural Sciences, vol. 3, no. 7, pp. 1–15, 2022.

[15] L. Kalake, Y. Dong, W. Wan, and L. Hou, “Enhancing Detection Quality Rate with a Combined HOG and CNN for Real-Time Multiple Object Tracking across Non-Overlapping Multiple Cameras,” Sensors, vol. 22, no. 6, p. 2123, Mar. 2022, doi: 10.3390/s22062123.

[16] P. Love, P. Davis, J. Ellis, and S. On Cheung, “Dispute causation: identification of pathogenic influences in construction,” Engineering, Construction and Architectural Management, vol. 17, no. 4, pp. 404–423, Jul. 2010, doi: 10.1108/09699981011056592.

[17] T. Fulmer, D. B. Reuben, J. Auerbach, D. M. Fick, C. Galambos, and K. S. Johnson, “Actualizing Better Health And Health Care For Older Adults: Commentary describes six vital directions to improve the care and quality of life for all older Americans.,” Health Aff., vol. 40, no. 2, pp. 219–225, Feb. 2021, doi: 10.1377/hlthaff.2020.01470.

[18] G. M. Begany and J. R. Gil-Garcia, “Open government data initiatives as agents of digital transformation in the public sector: Exploring the extent of use among early adopters,” Gov. Inf. Q., vol. 41, no. 3, p. 101955, Sep. 2024, doi: 10.1016/j.giq.2024.101955.

[19] T. Brown, “Big data’s impact on financial auditing,” 2022. [Online]. Available: https://www.hbr.org/bigdata-auditing

[20] International Federation of Accountants, “Big data in financial auditing,” 2021. [Online]. Available: https://www.ifac.org/bigdata-report

[21] Transparency International, “The role of big data in combating financial corruption,” 2022. [Online]. Available: https://www.transparency.org/report2022

[22] R. Ali, “The role of big data in improving financial control,” in Proceedings of the International Conference on Financial Technology, Baghdad, Iraq, 2020, pp. 233–245.

[23] J. Smith, “Big data analytics and financial auditing: Opportunities and challenges,” Journal of Accounting Research, vol. 45, no. 3, pp. 215–230, 2021.

[24] S. Al-Zahrani, “Big data analysis using artificial intelligence techniques in the auditing profession: A case study of PricewaterhouseCoopers,” Journal of Economics and Management, vol. 10, no. 1, pp. 85–102, 2019.

[25] M. Abdullah, “The impact of big data on audit risks,” Alexandria Journal of Accounting Research, vol. 4, no. 2, pp. 150–170, 2020.

[26] W. Zidan, “The use of big data in financial auditing: An applied study on banks,” Cairo University, 2021.

[27] M. Al-Hamsi, “The role of big data and its analysis in changing external audit procedures, audit evidence, and statistical sampling,” Higher Institute of Business Administration, 2020.

[28] M. M. I. Al-Hilali, Digital Transformation in the Age of Big Data: A Scientific Review. Dar Al-Fikr Al-Jami’i, 2021.

[29] K. Al-Azawi, “The impact of big data on the accuracy of financial reporting in government institutions,” Accounting and Auditing Journal, vol. 35, no. 2, pp. 125–140, 2022.

[30] S. Ahmed and M. Hussein, Financial Data Analysis Using Artificial Intelligence. Dar Al-Nahda, 2021.

[31] M. N. El Din, Big Data and Its Applications in Financial Auditing. Dar Al-Fikr Al-Arabi, 2020.