Factors affecting the adoption of big data analysis in financial audit at audit firms: A study of internal control

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Abstract

In audit firms as well as in other types of firms, big data is regarded as an emerging technology next time (Rosnidah et al., 2022). Big data analysis (BDA) is an emerging issue in auditing that is generating intriguing research questions (Hezam et al., 2023). The purpose of this research is to investigate external auditors’ points of view related to their motivations behind adopting BDA in a developing country, Vietnam. We report on the level of adoption and challenges that audit firms are facing when implementing BDA technologies in Vietnam. This study reports findings from semi-structured interviews with 37 auditors in Vietnam, and we also use secondary sources of data. The results illustrate that, overall, client size, audit firms’ strategies, and market competition are the key indicators for determining the implementation of BDA within audit firms in Vietnam. While Big Four accounting companies are at the initial stages of adopting BDA, the non-Big Four counterparts are yet to reach the adoption stage. We report that audit firms in Vietnam are facing challenges in implementing BDA, which include 1) lacking the skills and training required, 2) the relevance and reliability of the various data sources, and 3) a shortage of investment funding in small and medium accounting companies. Our contribution to the debate revolves around the dominance of the Big Four in global audit markets and its potential to reduce market competition.

Keywords: Big Data Analytics, Audit Firm Competition, Audit Techniques, Emerging Economies

Authors’ individual contribution: Conceptualization — P.T.N. and D.Q.L.; Methodology — P.T.N.; Investigation — P.T.N.; Resources — P.T.N. and L.H.N.; Writing — P.T.N., L.H.N., and D.Q.L.; Supervision — P.T.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M42, M48

Received: 22.09.2024
Revised: 31.12.2024; 10.02.2025; 08.05.2025
Accepted: 26.05.2025
Published online: 29.05.2025

How to cite this paper: Nguyen, P.T., Nguyen, L. H., & Le, D. Q. (2025). Factors affecting the adoption of big data analysis in financial audit at audit firms: A study of internal control. Risk Governance & Control: Financial Markets & Institutions, 15(2), 114–122. https://doi.org/10.22495/rgcv15i2p10