The Risk of Technology Dominance in Using Digital Decision Aids in Assurance Engagements—Evidence from a Survey among Danish Auditors

Abstract

SYNOPSIS Accounting firms continue to develop digital decision aids (DDAs) that reinforce consistent use of firms’ audit methodology and provide assurance for meeting regulator expectations. Firms actively promote use and reliance on DDAs, but relying on such systems risks over-reliance, impacting decision quality and heightening technology dominance. Surveying 725 Danish auditors, we sought to determine the level of reliance practicing auditors have on DDAs and understand how auditors experience these potentially deleterious effects in the field. Results show auditors rely more on DDAs when auditors are inexperienced, task complexity is high, there is familiarity with the DDA, and/or there is cognitive congruence. Junior auditors rely significantly more on DDAs than senior auditors, whereas auditors indicating low usage rely significantly less on DDAs. Overall, senior auditors and auditors not heavily using DDAs have deskilling concerns and are less positive on junior auditors’ as well as the profession’s skill development when using DDAs. JEL Classifications: M15; M41; M42.