AFRICAN ORGANISATION
OF SUPREME AUDIT
INSTITUTIONS

The African Journal of Integrated Verification

The African Journal of Integrated Verification number 23, December 2020, French version
The African Journal of Integrated Verification number 23, December 2020, English version
The African Journal of Integrated Verification number 23, December 2020, Arabic version
The African Journal of Integrated Verification number 21, French version
The African Journal of Integrated Verification number 21, English version
The African Journal of Integrated Verification number 21, Arabic version
The African Integrated Verification Review number 22, December 2017, French version
The African Journal of Integrated Verification number 22, December 2017, English version

2020 AFROSAI SCIENTIFIC COMPETITION

Topic : The effects of technological innovation on audit evidence

1st Prize Winner : Ahmed Esleman Yibrie – SAI Ethiopia

Mr. Yibries’s article articulated how technological innovation and automation enhance audit quality through :

  • improving collection of sufficient appropriate audit evidence ;
  • improving testing of data collected ;
  • Improving documentation;
  • effective management of audit risks.

The article also highlighted challenges in in effective use of technology in evidence collection namely: auditor capacity and competence, auditor attitude and financial constraints.

Finally, the article proposed actions that SAIs should take including skills that they need to impart on to the auditors while still retaining the auditors’ professional judgement and scepticism :

  • communication skills ;
  • Flexibility and agility;
  • creativity and critical thinking ;
  • leadership to promote creativity.

This resonates well with the INTOSAI CBC paper on the future ready auditor.

Joint 2nd Prize Winners: Sami Ali Mohamed Zaghloul – SAI Egypt 

Mr. Zaghloul’s article explored the concept of big data and how auditors can harness big data to perform audits. The article also explored the concepts of :

  • electronic evidence ;
  • smart audits using technology.

A key point raised in the article is that the purpose and nature of the audit process has not changed because of technology but the concept and nature of audit evidence has been affected by technology especially the emergence of big data. Technological innovations will assist auditors to obtain the same audit objective (similar to the manual process) through changing the nature, extent and timing of audit procedures.

The article recommends that firms should pay keen attention to the technical training of auditors. It also the use of information technology in general and big data analytics in particular to improve the quality of auditing in terms of efficiency and effectiveness.

These concepts are one of the key topics for discussion during this General Assembly.

Joint 2nd Prize Winners: Sammy Kimunguyi – SAI Kenya 

Mr. Kimunguyi’s article sought to establish the effect of technological, organizational and environmental factors related to technological innovations on audit evidence. The article was based on a study carried out on 47 external audit firms in Kenya including SAI Kenya.

The study established that the technological, organizational and environmental factors such as cost benefit of the technology, top management commitment, IT competency of the auditors, firms readiness and complexity of auditees’ accounting systems affected the quality of audit evidence collected.

The article proposed two critical recommendations in order to harness technological innovations :

  • policy framework for adoption of technological innovation in the external audit process ;
  • development of appropriate standards to guide application of technological innovations in managing audit evidence.