1 Introduction
1.1 Overview
The present edge of time is innovative, and to acquire the denoted changes the field of the business market, advanced innovation is the most needed technology to bring a quick turn of events. It is also an important factor to understand that with the use of innovation there are certain major changes in the businesses that can provide the businesses with greater productivity and improve the internal and external functions of the business. The imaginative and new advances may be related to risks where the board of directors in firms may get affected. It is also necessary to understand that the authorities of the organization have several other responsibilities were implementing new technologies is always beneficial for their work as well. As per the new turn of events, innovation is advancing step by step. Innovation is utilizing in the entire field and particularly the huge business ventures for having massive employments of innovation. The current examination would be directed in firms of Ireland to watch the impact of the new innovation on the decrease of danger and involving the advancement in reviewing. The zone of intrigue is very concerned in the field of business that impacted the exhibition of any firm.
It is also very vital to understand the necessary technology and innovation that is needed for utilizing it in the order technology where different organizations can easily invest and gain profit. There are several organizations who have invested in this technology and 50% of these organizations have revealed to the fact that without the use of computer assisted technology tools, they could continue the investigation. This was all due to the use of certain technologies that are focus to provide a solution to the organizations. However, this is also an important fact that the technology that an organization implements depends on the size of the organization, and it is also not always a cost effective solution for different organizations. Using the blockchain technology will always provide the organization to set a focus on several discovered benefits that are potential and can be easily assessed to reduce the workload within the organization. These also help in providing a greater amount of reduction in the causes of fraud and help the organization to flourish in the present business processes. There are several large-scale organizations and companies that have been familiarized by such innovation and its use, and they also have the intention to invent their self-made technology in this area. It is also important to know that there are several adoptions of technology in multiple organizations that are focused on the use of handling data, but the accountants and auditors of the organization are not accustomed to the implementation of such technologies which leads to the needs of proper training. The organization should also focus on enhancing the standards of the accountants and auditors in the organization that can help them to easily handle the entire project and risks. It is very important to understand that using this technology is within the organization will help the organizations of Ireland to improve its system in auditing and also reduce the chances of errors and problems within the organization. Using these technologies in the organization will provide the companies with a major focus on utilizing their main potentials in auditing and finding out several drawbacks that are present in the organization. The literature review of the research focuses on several conceptual frameworks that provide a detailed view regarding the problems that the organization is facing in terms of auditing. Using technologies like these can help in several factors like big data, enhancing the satisfaction of customers, saving the time of delivering a particular service or product, providing direct access to the data, increases the level of transparency, reduction in the major limitations and objectivity. However, this is also a point that the limitations that are focused in this sector are of short terms and therefore require the presence of detailed data while being examined. However, this is also a point that the limitations.
1.1 Research Purpose
The purpose of this research is to examine the effect of receiving new innovation in the distinctive degree of firms to recognize the danger and oversaw it well. The main focus of the research is to provide a detailed discussion about the major risk factors that are related to the process of auditing in different forms in the Republic of Ireland. To recognize the new innovation impact in the business and the academic community. It shall also focus on understanding and recognizing the importance of new innovation within different businesses to understand the impact of new innovation and its benefits on businesses. The territory of concern would be budgetary announcing, affirmation and observing ideas in evaluating to offer the types of assistance to the customer without having any imperative, sparing time, cash and unbiased working. The research will also focus on discussing the factors of using advanced technology in the businesses to boost the growth of the business and help in the alternative method of advanced technology in human resource. Secondly, it will focus on the using of innovation and technology in the observation of both macro and micro level industries in the country. The research will focus on helping the readers to understand the impact of the flow of cash and the efficiency level of the employees to understand the present risks that an organization might face along with the potential that is underlying in the use of such technologies within the organization. The topic discussed in the research is specific and will not only help in recognizing the major issues that are needed to be assessed but also help in understanding the major factors that can focus on the reduction of risk in different organizations of Ireland in the present era. The study not only focuses on impacting on the factors of risk management of auditing but also provides an overall effective solution to word certain specified areas and uses the factors of advancement in technology as a perspective. The starry shall understand not only the implementation of different strategies within forms but also provide a clear view regarding the influence of the performance that gets boosted due to the use of such technologies within the organization. Utilization of such technologies by the Human Resource department of the companies can help indirect management of data and checking of balance that is reflected in the data. The sudden change in the implementation of technologies and the introduction of them in the world of digital equipment is considered as one of the modern requirements in the present era. Every company around the world is constantly focusing on the factors of customer satisfaction, and they prove themselves by effectively providing the customers with the best services however seldom lose out of confidence due to the impact of auditing managers. Implementing these technologies shall be beneficial for the organization as it will provide them with the knowledge of the expected issues and theories like policeman theory will provide the accountant and the order to be accountable to the organization if they detect certain frauds. The auditors and accountants of the organizations can also provide the organization with certain solutions once they detect the fraud. The paper focuses on establishing certain areas where these theories are majorly discussed, and their effects on the organization have been stated clearly. There are several theories that are stated which are based on risk management in auditing that the paper discusses and status about the major benefits of using these theories within the organization. The theory is used to help the auditor to focus on appointing the write individuals who can ensure the credibility and also focus on increasing the confidence of the stakeholders of the organizations. The present demands for necessary methods and the pressure on these individuals also include the reputation of the organization in this area. The major requirements to introduce innovative technologies within the organization have become essential for various organizations in Ireland as it will help in improving the work efficiency. This will also focus on reducing the work pressure and relying on the factors of transparency will help in managing the possible dangers or risks that the auditor can efficiently determine at the beginning of the investigation of the fraud.
1.2 Significance of the Study
The main significance of the research is to provide the researcher with a solution regarding the factors of risk management in auditing. The research discusses various factors where it states that auditing and risk management in an organization always needs the implementation of several technologies that can help the organization grow. Understanding this factor, it can be stated that the main focus of the research is to specifically assess the internal and external issues that multiple organizations in the Republic of Ireland face while they are focusing on auditing and risk management of auditing. The present research mainly focuses on discussing our technologies and the innovation that multiple firms in the country have adopted to become better in the services that provide to their customers. It is a very understandable factor that every company around The World focuses on customer satisfaction, and auditing is a process that can directly affect the reputation of the company. To avoid the creation of fraud and its impact on the reputation of the company the research focuses on dating several theories of risk management related to that can help the organization to focus on various important factors where they can improve their systems of auditing and be aware of the entire fraud that might occur.
1.3 Research Objective
The main objective of the research is to discuss the relationship between the use of technology and risk management in audit firms of Ireland. There are several other objectives of the research that are discussed below:
- To find out the importance of using technology in various auditing forms of Ireland.
- To determine the technological use in the factors of risk management in auditing determines technological use.
- To investigate the understanding of the type of technology that is necessary for different organizations to focus while they are considering auditing as an important part despite the size of the firm.
- To analyze and examine the different types of risks that are related to the use of technology in several audit firms based on their size.
1.4 Structure of the Study
The research methodology focuses on providing an expanded view regarding the relationship between the use of technology and risk management in auditing firms in Ireland. Therefore the research shall focus on providing certain important factors in the literature review of the research where the major factors that impact on the internal auditing and risk management shall be observed. It will also focus on several other factors that will help in evaluating the factors of risk management and understanding the performance of the company. The research will provide a unique phenomenon in the process of introducing new technologies within various firms of auditing in Ireland. It will also focus on enhancing the factors of objectivity and reduce the obstacles related to space, time, and money. The literature of the research will provide a flourishing knowledge regarding the risks related to management and the methods to assess them. The issues presented in this research paper show the
Section 2: A literature review
2.1 Introduction to Literature
The literature review contains detailed information about the research done before on this topic. It systematically presents the data and helps understand the topic in depth. It represents the entire research paper in summary, including articles, surveys, and books on the same topic. It also shows the earlier research done on the same topic. It contains the introduction of literature, existing literature, Issues highlighted among literature, and gaps in the literature. The importance of risk assessment is as important as risk management. Good risk management needs improved information and data so that the firm can accordingly take action on the varied range of inventory of risks. This literature review will help the reader to have a clear knowledge of the relationship between the uses of technology in audit risk management and will provide a better understanding of this topic. The introduction of the literature review provides a brief description of the sources and division of the topic into its subtopic and gives the reader the structure of the literature review, including its various other components. The existing literature assures that the person writing the literature review is not just repeating him or her and is providing the required information in his or her point of view and according to their perspective and understanding. It demonstrates that this study on the topic “Relationship between uses of technology in audit risk management in firms of Ireland” does not contain the same information and conclusion of thoughts as compared to other research papers on the same. Since the topic is the same, of course, the basis of information and the concepts remains the same, but the analysis, conclusion, and assessment of the topic are different and unique. Gaps in the literature review recognize and identify the gaps in the understanding and the issues that the research paper is talking about. It also about finding the limitations the person had to face while preparing the entire literature review on the given topic, the problems faced while researching the topic, and the gaps which the research paper has between its issues and the person’s knowledge. It also discusses the various parts which were left unaddressed while researching due to certain problems. Issues highlighted among the literature provide the reader with a brief introduction of all the discussed issues and problems in the literature review. It highlights the main problems in short, which are already described in detail in the research paper. The issues presented in this research paper show the problems faced by using technology in audit risk management. How the process of auditing is getting affected by using technology and whether it is beneficial or not. If it is not, then what are the major problems are being faced by the professionals and auditors. In this literature review, the issues, background, and some limitations of audit risk management which gives an entire summary of all the small topics and subtopics such that the reader can comprehend the ideas, objectives, advantages, and disadvantages of the relationship between using technology in audit risk management. A literature review is a great way to provide a detailed summary of every concept discussed in a research paper. Overall in the literature review, a brief description of the various aspects of the topic is discussed, providing the reader with an overall analysis of the topic.
This will also provide the entire research with a clear view of the basic considerations of auditing and risk management within the research. The literature review of the present study will give a detailed discussion about several other topics that can be related to the study and will provide a clear indication regarding the necessity is of implementing various theories in the risk management of auditing.
2.2 Existing Literature
The focus of the present study is to recognize the vital aspects related to the development of transparency in the factors of intra organization and also in promoting the vital objectives that can help in understanding the factors of combining technology and the perspectives of management. To understand the factors of using technology in audit risk management of a firm, it is also very important to understand that combining these services will always impact on the quality of audit that the organization is opting for. It is important to access the risk assessment that is related to the use of multiple technologies in management of the risks related to order it within an organization. The major perspective of the paper is to introduce recent policies that help in regulating the system and also provide the organization with a revolutionary solution in risk management. It is important to understand that auditing is a very vital topic in the factors of risk management. Both internal auditing and external auditing should work together in different levels that also include the factors of corporate governance to manage the risks that our internal and external for the organization. It is important to understand that different organizational culture adapts their risk management functions based on the internal functions of the organization. Each of the functions adopted by the organizations depends upon the level of supervision and the interest of the authorities in mitigating the risks. The major benefits of using technology in audit risk management it is important for the authorities of the organization to understand that auditing will not only help the company with profitability but also ensure several securities for the organization. It is also important to understand that there are various models of risk assessment in the process of auditing which are very important to understand and acknowledge by the organization as it depends on the use of the organization. Each of the models is different, and their variants are available in different sectors. The models that are used by an organization depend upon the type of the kind of risks the organization has to face from audit management. These risks have an impact on the entire organization and both on its external and internal systems. Using technology is also important on the basis of the size of the organization, and it is also important to understand that the degree of the problem depends on the size of the organization. Therefore before planning to implement software within the systems of the organization, it is important for the owners of the organization to the size of the organization and understands its major requirements. It is important for the
2.3 Issues highlighted among literature
To understand the interdependency and level of transparency in the sectors of auditing, it is necessary for the auditors to focus on the present big technological factors that can be directly related to risk assessment and analysis of data while the process of auditing becomes an important part with the adaptation of technology. In such cases, it becomes essential to understand the basic relationship between the auditor and the client and the irreplaceable bond between them. However, it is also an important factor that with the use of advanced technology it is also essential to get the change done within the organization to determine the factors to improve the major factors of management. Each of the technology that is used is focused on higher levels in the industries, and each industry knows the particular use of each technology. Size of the organization becomes an important factor for the implementation of technology, and it also becomes a major issue if the size does not match with the technological advancement. Despite all such factors, it is also necessary to understand that the change which should be brought within the organization should be at a higher level. This will help the authorities of the organization to easily mitigate the problems and lead the organization towards the path of success. Lacking expertise is also an important factor where quality controls of auditing help in bringing big changes in the same field. This provides the organization with certain risk assessment along with the management of change within the organization and in the field of auditing. Introducing search new technology is within the organization is always risky as people are unaware of such new technologies where they tend to use it in a wrong way or are reluctant to be a part of the implementation. However, considering the present scenario introducing innovative technology in different areas such as audit and finance becomes interesting in countries like the Republic of Ireland where it can be easily used to find out the productivity and the performance of different organizations in the country. The productivity and the performance of
2.4 Gaps in the literature
Gaps in the literature review identify the gap between the knowledge and the description of the research to the actual issues and problems existing in the entire research paper. Improvements in technology have been dynamic and are rapidly changing and upgrading itself according to the demands and needs of the people. It has been beneficial for each and every sector, including accounting and finance. It has made the auditors be better in recognizing the given data and their capability to create and think of business ideas and their attention on the various financial reports. It is definitely going to cost a lot as technology tends to change a lot. The usage of technology to provide and enhance the decisions related to risk management is still not widely relied upon whereas the management and the supervisors are made to advise and have the final say while figuring out the best option available to decide regarding audit risk management. This could be eliminated or reduced by adopting innovative and upgraded technology. Auditing has a very important and essential role when it comes to managing the company’s profile and where to take risks and assess the risk area according to the benefit of the company. Future risks can change, and so it is difficult to predict the impact of the risks involved. Where technology is concerned, it is also changing and modifying itself, and there can be errors in analyzing or understanding the risks. Technology is not taken into consideration by most of the firms during cases of emergencies or a bigger risk where nothing can be predicted, and everything is happening very fast. Technology also has certain limitations when it comes to decision making, it can only decide on the situations which can be predicted, and there is time for external physical factors to affect the decision too, but sometimes the company might face a sudden change where seeking decisions becomes the last option and only the expert professionals are given the power to make changes. Definitely, technology has affected the auditing process of risk management, but just like other things, there are always some advantages and disadvantages to it. Being a professional or an auditor, it certainly becomes easy to assess and analyze the reports and gives them a push to their thought processes. Technology in risk management has clearly provided wonderful results and is being adopted by various companies, firms, and organizations. It has also helped to reduce the load from the auditors’ and professionals’ shoulders; however, it also has some limitations and loopholes in its process and decision-making factors which should be taken care of before concluding to the final decision. It also has some limitations and loopholes
2.6 CONCEPTUAL FRAMEWORK
A conceptual framework can be defined as a tool that helps us to analyze and illustrate the different topics on which the researcher is working on. It is often formatted in a visual representation to illustrate the findings of the research. The main purpose of the conceptual framework is to determine the objectives of financial reports and also to find out the primary concepts that helped in achieving the objectives. The conceptual framework is a necessary part of the literature review. It is rigid and then creates a disadvantage between the actual accounting standards and conceptual design. This literature will include more than one theory as well as concepts from the above findings in the literature. It could be used for research and data analysis. With the shift to the current events, emerging technologies are playing a greater role in the financial structure of any organization. The technologies help to accelerate sustainable financial activities with the help of cloud computing, blockchain management, artificial intelligence, and so on. With the introduction of new technologies, the methods of the business changed a lot from the previous orthodox business format. Not only the business, but even the auditors have also changed their auditing processes by using new technology. In the evolving era of technology, it is necessary for significant players in the financial markets such as audit committees, auditors, and other managerial executives to create a stronghold on their part of responsibilities. With the technological changes, the traditional design of auditing changes as well. The financial process of reporting gets easier, and all the manual work gets reduced. With the evolution in the auditing structure, it has created more emphasis on the internal management and its control and also on the reporting of the financial analysis based on the business activities.
The conceptual framework literature also includes the management of risk assessment while auditing through technology. Every big organization faces some of the other risks while presenting the financial analysis at the time of auditing. Using technology to reduce dose risk can increase the core strength of audit management and risk control. With the implementation of new technology, the auditors can easily gain an oversight about the potential risk. It also helps in the assessment of the risk present during the auditing process. It helps in understanding the changes implemented by the company to increase business activities. It also includes information regarding the change in the technological environment of the business. Technology helps in determining the key area of focus while performing audit risk management. New technology not only affects the auditing process but also manages the other business activities in a significant manner. It brings about necessary changes in the existing processes such as changes in revenue analysis, determination of the roles and responsibilities of every individual change in the internal business environment such as inventory and supply chain management, and others. It also helped in identifying the changes in the external business environment. The technological changes also helped in managing the new develop identity of the business. It helps the business to adapt accordingly to the dynamic business environment by transforming the old traditional managerial activities into a more effective and efficient managerial framework. The new effective and efficient framework adopted by different organizations helps them to acquire better controls over the external activities and respond to the uncertain risk efficiently. The new technology has created a significant impact on the organization’s evaluation and determination of risk that can hamper the activities in the achievement of the objectives. The organizational management gained and effective control over the identified rest with the help of newly designed technology. It helps in managing the data and information within the organization, details about the stakeholders, systems of outsourcing, risks while auditing, and so on. Key developments in technology such as Artificial intelligence and the internet of things (IoT) has helped the auditing committee to manage large scale financial information and produce relevant and viable financial statements for the organization. With the changing time, a shift in tools and systems reduce the manual labour of the auditor’s. Technologies like artificial intelligence and the internet of things help in connecting any devices with the internet from anywhere in the world. This has reduced the overall activity cost is required during manual auditing. Artificial intelligence can be used as a tool by the auditors to manage business performance and processes efficiently. It uses better and advanced machine learning algorithms to perform the task and monitor the internal audit activities. AI has reduced the operational risk while auditing and helps in making correct reports which could be used by the management in making better decisions. A new technology known as Smart Contracts helps in maintaining the necessary contacts and information regarding the stakeholders like the retailers, the wholesalers, the suppliers, and others in an efficient manner. The Internet of things helps in connecting the auditors with the internal management of the organization simply by a click on the connected devices. They could easily check the financial statements of the organization from a different part of the world. Though, the existing literature about technological uses in managing the auditing risk has stated that and disadvantages and gaps. However, relying on artificial intelligence as a method of risk assessment can create a unique change in traditional orthodox business practices and activities. Many business organizations have already taken up new technologies to manage their activities. Technological development also helps in creating innovative products and services to fulfil the demands of the consumers as well as manage the internal processes. Thus, past articles provide relevant information regarding the uses of technology. With the changes in the advancement of technology, it can bring about greater efficiency in managing business processes and opportunities to enter into new markets. It can also help the organization to overcome new challenges as well as gain an advantageous insight over the risk present in the financial reporting as the auditors need to be aware of the responsibilities and of the potential risks present in the business environment.
Theory of Reasoned Action (TRA), Technology Acceptance Model (TAM), and Diffusion of Innovation (DOI), the theory of Planned Behavior (TPB), Social Cognitive Theory, Unified Theory of Acceptance, and Use of Technology can be stated as models that are very important for the theory of acceptance and also includes the use of technology as it support and is considered as a superior model. The models mentioned above provide a holistic approach that also helps different organizations to adapt to different risk management systems related to auditing. Accumulating all the theories together, it might be confusing to understand each of their functions; however, they provide fulfilling criteria in solving the problems within the organization. Each of these theories has a different aspect of understanding and elaborating the criteria that are necessary for the risk management of auditing. Using these theories help the IT technology to focus on different topics and not only in one factor. The objectives of each of the theories provide a clear indication that risk management of auditing requires the use of several fundamentals to understand is basic needs and find the approaches. According to the claim of the author, each of the approach established by the theories is based on detailed evidence, and this evidence constantly tries on proving the points and supporting the basic of the research.
According to the claim of the author, each of the approach established by the research