The adoption of cloud computing by the local audit firms

Abstract

PURPOSE This study analyses the implications of adopting cloud computing in the local audit firms. This innovation provides the ability for firms to access data and applications, through the internet - anytime and anywhere. For this reason, the study assess financial implications such as the expenditure involved in such an adoption, and non-financial implications such as data storage on the cloud, existent internal controls, security, legality, governance and internal culture. DESIGN The research is a qualitative study, and for this reason, semi-structured and in-depth interviews were performed with fourteen local audit firms. FINDINGS The results of this study show that despite the fact that local firms, are aware of the benefits of cloud computing in relation to their data storage, the lack of awareness in the provider's security practices and in existent legality issues, make them reluctant for such an innovation. Furthermore, the internal culture of local firms, together with the perceptions of such a phenomenon by the firm's key management personnel also makes a difference in deciding whether a firm opts for cloud computing or not. Albeit this, local audit firms acknowledge that cloud computing does not make an audit firm more IT dependent, or cause any radical changes to the firm's existent governance structure. CONCLUSIONS It is inevitable that the phenomenon of cloud computing is going to remain, and such an adoption is of a great benefit to local audit firms. However, the main problem remains in the culture and perceptions of key management personnel, attributed from the lack of knowledge in such a phenomenon. For this reason, if local audit firms are provided with the necessary guidelines and information on the subject, cloud computing has the ability to uncover major costs reduction and benefits for local audit firms. IMPLICATIONS/VALUE If such an adoption is not carefully assessed, negative repercussions are likely to occur. For this reason, this study provides a comprehensive memoire on the possible implications that cloud computing could develop into local audit firms.