The Auditor’s Role in a Digital World : Empirical evidence on auditors’ perceived role and its implications on the principal-agent justification

Abstract: Most of the theory that concerns auditing relates to agency theory where auditors' role is to mitigate the information asymmetry between principals and agents. During the last decade, we have witnessed technological advancements across the society, advancements which also have affected the auditing profession. Technology and accounting information systems has decreased information asymmetry in various ways. From an agency theory point of view, this would arguably reduce the demand for auditing. In the same time, the audit profession is expanding into new business areas where auditors perform assurance services. The purpose of this paper is to investigate auditors' role in a technological environment. Interviews have been used to explore auditors' perception of the role. The result indicates that auditors' role still is to mitigate principal-agent conflicts, though, information asymmetries are expanding to comprehend more and to a wider stakeholder group due to technology. The end goal is still the same, that to provide trust to the stakeholders, technology enable new ways of reaching there and broadens the scope towards systems and other related services. That is the perceived role of auditors in today´s technological environment.