The future of audit: Examining the opportunities and challenges stemming from the use of Big Data Analytics and Blockchain technology in audit practice

Abstract: Thesis Purpose: The purpose of this thesis is to contribute to the extant knowledge and further research regarding the effects of Big Data Analytics (BDA) and blockchain (BC) technology on the future of the audit profession and to provide a framework grounded in existing theoretical research which would explore ways in which BDA and BC technology could be integrated into the audit procedures of the future. Methodology: A qualitative approach has been chosen and mainly inductive reasoning has been used to answer the research questions. First, a systematic literature review has been performed. Second, a case study has been conducted using semi-structured interviews at KPMG Luxembourg and PwC Malmö. Theoretical Perspective: The theoretical perspective is an aggregation of the most relevant findings from the Systematic Literature Review (SLR) and the Case Study (CS), which represents the underlying theoretical foundation for this thesis. Moreover, a theoretical framework is built upon those results. Empirical Foundation: The empirical data for this thesis has been collected through semi-structured interviews with one employee at PwC in Malmö and five employees at KPMG Luxembourg. Furthermore, internal and external reports have been collected to derive conclusions. Conclusions: The body of research relating to BDA and BC technology has been growing at an increasing rate in the last three years. Increased standardisation of audit procedures and use of BDA could enable and foster the implementation of BC technology, which will change the audit profession. Semi- or full automation of time consuming but simple audit tasks will lead to more effectiveness and efficiency; and ultimately to cost-savings. The CS showed that contextual factors have an impact on interviewees' perception regarding the challenges and the future of their profession. However, they acknowledge that BDA and BC technology will play a big role in the future of audit. Furthermore, this thesis provides a theoretical framework which could enable audit firms to integrate BDA and the BC technology into future audit procedures.