Driving and Inhibiting Factors for Implementing Audit Analytics in an Internal Audit Function

Abstract

ABSTRACT Internal audit function (IAF) effectiveness can be improved by embracing Audit Analytics (AA). However, despite its promises, AA implementation remains limited. Although there is research on AA implementation in general, there needs to be an overview of insight into inhibiting and driving factors for internal auditing. This paper examines those driving and inhibiting factors by exploring the literature on AA implementation. The initial search revealed 98 uniquely identified papers. Further filtering and the additional search returned 42 articles, which were analyzed in detail. The analysis resulted in 12 driving and 23 inhibiting factors, grouped into internal, regulation, data, infrastructure, and audit practice categories. The literature shows that IAF encounters multiple and intertwined factors in AA implementation and needs to anticipate those factors. Moreover, AA implementation affects IAF’s parts and stakeholders differently, requiring internal and external collaboration. Building on these insights, we provide recommendations for further research. JEL Classifications: M42; M49; O32.