A Proposed Framework for Big Data Analytics in External Auditing and Its Impact on Audit Quality with A Field Study in Egypt

This research aims to explore the determinates of Big Data Analytics application (BDA) in external auditing, conceptualize the different contingent factors based on Technology-Organization-Environment Framework (TOE) and the perceptions of the audit firm, business clients, and some practitioner in Egypt regarding BDA and external audit practices and analyze the effects of these determinants on audit quality. To achieve this goal, contingency theory, analytical approach, and questionnaire with three different types of respondents are used.
 The authors explore contingents' factors that trigger the application of BDA in different stages of auditing and analyzes  its implications on audit quality.The study presents a few key results regarding the use of BDA in external auditing.
The authors recognize three groups of contingent determinates (TOE) and the conditions that govern the use of BDA will lead to improving audit quality elements (Input-Process-Output)
Besides, the authors' emphasis on the relationship of the audit firm, business clients, experts in information technology, and regulators in motivating the use of BDA and improve audit quality.
The study specifies an attitude of external auditors that are likely to concentrate on using BDA techniques in audit engagement not only to achieve regulatory requirements but also to add value to business clients and the auditing quality three sides of the Iron triangle (efficiency/effectiveness/cost reduction and quality).
Moreover, some challenges restrict using BDA techniques in audit plans in Egypt such as audit firms' size, information systems infrastructure, and long-term audit engagements. The proposed framework can address the current issues related to the drives of BDA application and the empirical investigation of situational conditions that make BDA more relevant in external auditing in Egypt. Furthermore, the research discusses the phenomenon of BDA as one of the most recent topics in auditing. Moreover, it concludes  the contingent determinates that make BDA more beneficial based on contingency theory.