Effect of Evidence Sequencing and Big Data Analytics Knowledge on Risk Assessment Accuracy

Abstract

This study aims to determine how the sequence of evidence and knowledge of big data analytics can effect the accuracy of junior auditors in assessing the risk of misstatement. The research method involved experimentation using a 2x2 factorial design. The  study was conducted with 66 junior auditors who work in KAP (Public Accounting Firm) located at Bandung, Bekasi, and Jakarta. The empirical results of this study demonstrate that the sequence of evidence and knowledge of big data analytics do have an impact on the accuracy of risk assessment. These findings have implications for public accountants that knowledge about big data analytics an be used to enhance training and education, ultimately leading to improved performance of auditors in the audit process. This research has not been widely associated with the use of big data analytics knowledge as a basis for research. Currently, big data analytics is more commonly utilised as a supplementary study to provide an overview of the era of the Industrial Revolution 4.0.