A Framework for Auditor Data Literacy: A Normative Position

What is it about?

Due to the nature of the current data-driven business environment, many accounting firms are starting to realign their processes to incorporate technology and Audit Data Analytics (ADA). This paper provides commentary on why data analytics knowledge should be required of the profession, in addition to that of traditional accounting. We discuss the current information-centric business environment, the availability of Big Data, and the existing data analytics efforts made by businesses, with its subsequent impact. Regarding the complementarity of available data analytics tools and data analytics knowledge, it proposes a guideline for the content and levels of ADA knowledge and skills that should be required of auditors in different positions. Finally, suggestions are provided to facilitate the adoption of ADA and provide solutions to challenges in the CPA exam, audit standards, and education.

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