Abstract
Information technology (IT) has been identified as an important component of a company’s internal control and general business environment (COSO 2009). This paper examines how IT innovativeness can create value in the accounting domain through its role in improving efficiencies associated with the audit process by reducing overall inherent risks and business risks. To test the relationship between IT innovativeness and audit efficiencies, we use a sample of IT firms recognized by the publication InformationWeek as innovative users of IT and compare those firms with a control group. For the dependent variables measuring audit efficiencies, we focus on audit fees and audit delays. Our research suggests that firms recognized as IT innovators pay lower audit fees and receive their audit reports in a timelier manner than the control firms. Our results are consistent with the idea that investments in IT can provide significant benefits for firms in terms of audit efficiencies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callSimilar Papers
More From: Review of Business Information Systems (RBIS)
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
