The Impact of Audit Firm Size and Client Characteristics on IT Audit Specialists Use

• In Event: Continental Breakfast and Research & Education Forum
  In Paper Session: Table 10: External and Internal Auditor Choice

Abstract

Given the growing importance of information technology in the business world, external auditors are increasingly relying on the work of information technology (IT) audit specialists. While prior research examines the relationship between IT audit specialists and auditors, this research is limited to the largest audit firms. Given differences in resources, audit methodology, and client characteristics of audit firms of various sizes, this paper extends prior research by examining the use of information technology audit specialists by auditors employed by local, regional, national, and Big 4 firms. We find that IT audit specialist use varies by audit firm size. Big 4 audit firms are more likely to use IT audit specialists than regional and local firms. IT audit specialist use by national firms is increasing. In addition IT audit specialists are used significantly more often when auditing clients with high IT complexity.

Authors

• Diane J Janvrin, Iowa State University

• James Greg Jenkins, Virginia Tech University

• James Bierstaker, Villanova University

• D. Jordan Lowe, Arizona State University - Tempe