SUMMARY
Data analytics are regarded as indispensable in enhancing auditor performance in the era of rapid technology advancements and Big Data. We examine the extent to which social support facilitates internal auditor adoption of data analytics, and whether the use of data analytics is associated with performance. Using a unique proprietary dataset from a large insurance company in the U.S., we document that peer social support developed through coparticipation in company trainings, accelerates the adoption of data analytics in various internal audit tasks including continuous auditing, communication, aligning risks and controls, and aligning data analytics with business control objectives. Further, the extent to which data analytics are used is positively associated with several dimensions of auditor performance including internal audit skills, communication skills, and business knowledge. These findings inform research and practice about effective mechanisms that induce auditors’ use of data analytics and the benefits of data analytics in internal audits.
