Remote audit quality : post-pandemic adoption, technology and ethical best practices

Abstract

PURPOSE: The objectives of this study are (i) to analyse the evolution and post-pandemic adoption of remote auditing, examining its emerging challenges and benefits; (ii) to evaluate the role of technology in remote auditing by investigating key tools and their implementation; (iii) to assess the impact of remote auditing on audit quality and identify strategies to maintain audit quality; and (iv) to explore the integration of remote auditing approaches and establish standardised best practices that support ethical compliance. DESIGN: To achieve these objectives, a mixed-methods research approach was adopted. Thirteen semi-structured interviews were conducted with auditors from the Big Four and Mid-Tier audit firms. FINDINGS: Remote auditing (RA) has evolved from a niche practice to a mainstream approach, accelerated by the COVID-19 pandemic. Despite its growth, challenges persist, including reduced in-person engagement and limited junior auditor development. Conversely, RA offers benefits such as improved efficiency and flexibility, enabled by digital tools like video conferencing and cloud-based collaboration platforms that enhance communication and accessibility. While these tools streamline workflows, they cannot fully replicate on-site audits, as RA relies on client-provided electronic evidence. Furthermore, although auditors perceive RA as having a neutral impact on audit quality (AQ), it introduces AQ threats that are more pronounced in asset-intensive industries than in digital-native sectors. Technologies such as artificial intelligence can mitigate certain risks; however, they do not significantly shift perceptions of RA’s effectiveness in maintaining AQ, reinforcing the need for continued investment in technology, training, and accountability. Consequently, a hybrid approach combining remote and on-site procedures has emerged as the preferred model, balancing efficiency with essential in-person interactions while ensuring ethical compliance through strengthened cybersecurity controls and updated guidance for RA. CONCLUSIONS: This study concludes that RA signifies a lasting transformation in the audit profession, promoting greater flexibility and efficiency in audit practices. For long-term success, firms must address RA’s limitations while leveraging its strengths through a hybrid model to maintain consistent AQ in an increasingly digital environment. IMPLICATIONS: This study aims to provide insights that guide the sustainable adoption of RA, assisting firms tackle operational, technological, and ethical challenges while ensuring that innovation enhances audit practices and supports a resilient and adaptive future for auditing.