Auditors’ Perceptions of the Triggers and Obstacles of Continuous Auditing and Its Impact on Auditor Independence: Insights from Egypt

Abstract

Our study explores auditors’ perceptions of the triggers and hurdles of implementing continuous auditing (CA) in Egypt. It also explores auditors’ perceptions of the impact of CA on their independence. A survey of ninety-five auditors working in Big Four and non-Big Four firms was conducted to gather data. Descriptive statistics and the Friedman test were used to test our hypotheses. In addition, using the Mann–Whitney U test, we delve deeper into auditors’ perceptions to examine differences across audit firm types. The results reveal that addressing the increasing demand of stakeholders for real-time reporting and enhancing the quality of financial reporting significantly affect auditors’ perceptions of the triggers for adopting CA. In addition, the lack of standards related to CA and the high cost of implementation significantly affect auditors’ perceptions of the obstacles to implementing CA. The lack of clear guidelines regarding the work required in CA and auditing data that the auditors have previously corrected during the CA process is perceived by auditors as among the most significant factors that can impair their independence. The significance of this study stems from the fact that it is one of the few studies to explore continuous auditing practices in developing countries. To the best of our knowledge, this study is one of the first to investigate how CA affects auditor independence in developing countries.