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The aim of this research is to determine how the application of Big Data and Data Analytics techniques influences the external audit. The impact on the working methods and the audit quality is discussed. Furthermore, the technological maturity of the Belgian and Luxembourgish audit industry is analysed. Therefore, the following research questions are asked: How do Big Data and Data Analytics influence the audit working method? What is the impact of Big Data and Data Analytics on the audit quality? How is the audit risk identification and assessment phase influenced? Which audit risks can be identified? Which tools and techniques do the Belgian and Luxembourgish auditors use and where do they stand? In order to answer the research question, scientific articles were analysed in the context of the literature review. Subsequently, a case study was carried out. Interviews with experts in Belgium and Luxembourg were conducted. The results of the research show that there is high potential to use these technologies in audit. Nevertheless, it is also connected with initial investments and a certain agreement of the clients. There is high potential to enhance the auditor’s effectiveness and efficiency, but the complete impact cannot yet be analysed. The audit quality can be enhanced when qualitative analyses generates audit evidence based on high quality data. The Belgian and Luxembourgish audit industry has just started implementing the technologies.

Big Data --- Data Analytics --- External Audit --- Audit --- Sciences économiques & de gestion > Comptabilité & audit

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L'objectif de ce travail est de comprendre comment la relation entre l'audit interne et l'audit externe, encadrée de manière théorique par la norme d'audit ISA 610, est mise en place en pratique.

Pour ce faire, il est tout d'abord nécessaire de comprendre le mode de fonctionnement de chacune des parties pour, ensuite, analyser les conditions (notamment, l'évaluation de la fonction d'audit interne et de ses travaux) qui encadrent l'utilisation des travaux de l'audit interne par l'audit externe. Cette partie théorique se base sur les normes d'audit ainsi que sur un certain nombre d'études précédemment réalisées sur le sujet.

Dans un second temps, il s’agit d’analyser, en pratique, au travers d'interviews réalisées auprès d'auditeurs internes et d'auditeurs externes, dans quelle proportion et à quel niveau les interactions entre audit interne et audit externe ont lieu. Nous nous rendons, dès lors, compte qu’en pratique, ces interactions ont principalement lieu au niveau de la vérification des contrôles internes, mais restent relativement faibles en raison de plusieurs facteurs, à savoir : la faible présence de fonctions d'audit interne, l'obligation d'évaluation de l'audit interne coûteuse en termes de temps, et les différences en termes d'objectifs, de méthodologie, et de périodicité des tests réalisés. La collaboration peut, cependant, être incitée par l'appât du gain ,en termes de temps pour l'auditeur externe, ou financier pour le client, mais ces gains restent rarement significatifs. Enfin, la collaboration entre audit interne et audit externe n'a aucune influence sur la détection de fraude, seule la présence d'une fonction d'audit interne peut avoir un impact.

Internal audit --- External audit --- ISA 610 --- Collaboration --- Sciences économiques & de gestion > Comptabilité & audit

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Influenced by audit failures and the recent crisis of 2008, the audit world has been subject to changes. One of them being the introduction of the ISA methodology in Belgium for all audit after December 2014. The introduction of the norm ISA has brought the audit approach by the risks. The approach by the risks imposes auditors to get a comprehension of internal control for the purpose of the risk assessment. In addition, the comprehension of internal control system creates a possibility for the auditor to rely on controls in order to get reasonable assurance on the financial statements by testing their operating effectiveness. 
The purpose of this thesis is to understand on the field the impact internal control can have on the external audit of financial statements in the Liège region. After conducting ten interviews with professional auditors, it results that internal control is recognized by all as fundamental in the audit process and they could not do a quality audit without getting a comprehension of it. The results obtained from the analysis showed that the preliminary assessment of internal control provides an important basis for designing and implementing responses to cover the assessed risks. It influences on the sample size and the percentage of the performance materiality were of the most cited examples. It also results from the interviews, that the audit control-reliance strategy is not seen as reducing the audit time and cost but is seen as valuable for reducing the substantive procedures and splitting the works on the whole audit year. However, the results also indicate that in the majority of the audit, auditors are relying exclusively on substantive procedures due to globally low level of operating effectiveness of controls. The lack of segregation of duties and of documentations, the weak ICGT, the objectives constraints of management, the change in personnel are among the obstacles cited during the conversations with auditors that prevent them to rely on internal control. Nevertheless, with the high computerization and the high level of transactions of some companies, testing the operating effectiveness of control became essential in the audit of those enterprises and is recognized by all as inevitable to have reasonable assurance on the figures. It is also concluded that internal control has rarely a direct impact on the audit opinion but can appear in the reasons for a modified opinion related to a particular cycle.

Internal control – External audit – Independent audit – ISA – Audit strategy – Tests of controls --- Sciences économiques & de gestion > Comptabilité & audit

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The external auditors are important factors for assuring that the financial statements are accurate, trustworthy, and free from material misstatements. During the audit process, they perform a series of procedures to evaluate the internal control and to obtain audit evidence. Nowadays, companies are required to have an established internal audit department which, performs similar procedures to those of external auditors. Moreover, the international auditing standards (ISA) circumscribe the framework for external auditors on how to use the work of internal auditors. 
Consequently, studies have proven that internal and external auditors do not collaborate so often. Hence, this paper aims to understand what the barriers are, that prevent both actors from collaborating. The pre-existing scientific articles have shed light on barriers that prevent collaboration. Therefore, this paper intends to tackle some of the persisting obstacles and also to provide some solutions. To achieve this, we conducted numerous interviews with experienced external and internal auditors. 
Throughout our research, we were able to confirm some barriers and disallow others. One of the issues that were found, was the lack of objectivity of the internal auditors. The internal auditors are competent but not objective due to their affiliation with the company. This is believed to be a significant barrier to external auditors. According to the respondents, some of them believe in outsourcing the internal auditors whilst others suggest the use of the audit committee. Furthermore, most of the respondents agreed that the audit committee is a significant caretaker of independence. Besides, ensuring objectivity, it is believed to be a steppingstone to a significant collaboration by frequently organizing meetings with the internal auditors granting access to accurate information. The companies can aid the collaboration by investing in the internal audit department and by providing adequate professional training, as a result, improving efficiency and reducing audit fees.
To conclude, this paper has proven the existence of collaboration. However, it needs to be enhanced and to do so, the internal auditors must recognize the aim of the external auditors.

Internal audit, External audit, audit committee, relationship, independence/objectivity, competence, and collaboration. --- Sciences économiques & de gestion > Finance

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External auditors are responsible for delivering reasonable assurance that the financial statements are free from material misstatements. Throughout the audit process, they perform a series of procedures to evaluate the internal control and to obtain audit. At the same time, many companies have an established internal audit department which, on multiple occasions, performs similar procedures to those of the external auditors. Consequently, the International Auditing Standards define a framework for external auditors on how to use the work of internal auditors. Somewhat remarkably, studies revealed that collaboration do not happen quite often. First and foremost, this thesis aimed to understand what prevents the two sides from cooperating. The existing scientific literature contained fragmented analysis of certain aspects of the collaboration. As a result, our thesis aimed to tackle the observed obstacles and to provide solutions. To achieve this, we conducted several interviews with highly experienced external and internal auditors.

internal audit, external audit, audit committee, collaboration, cooperation, governance, ISA 610, independence, objectivity, audit fees, audit quality --- Sciences économiques & de gestion > Comptabilité & audit