Big Data Challenges and Opportunities for Accounting and Auditing

Abstract

With the proliferation of big data across various industries, the accounting profession has been profoundly impacted by the vast amount of data and its unique characteristics. It is crucial for accountants and auditors to comprehend the big data landscape to effectively carry out their roles. The objective of this paper is to introduce the concept of big data and discuss its distinctive characteristics, as well as the opportunities and challenges it presents in the realm of accounting and auditing. The findings of this study demonstrate that in the realm of financial accounting, big data presents an opportunity for more objective assessments of fair values. Furthermore, in the field of auditing, big data facilitates substantiating management assertions and enhances the auditor's opinion, audit report, and overall audit quality. Finally, this study opens avenues for extensive research in the realm of big data's impact on the accounting profession.