Impact of the audit client’s use of metaverse technology on audit risk assessment: evidence from the Middle East
Omar Ikbal Tawfik, Hamada ElmaasrawyPurpose
This study aims to examine the effect of the audit client’s use of metaverse technology (MVT) on audit risk assessment, especially the inherent risk (IR) assessment and control risk (CR) assessment and detection risk (DR) assessment.
Design/methodology/approach
The questionnaire is used to collect data from 261 auditors in five countries in the Middle East and North Africa (MENA). The data have been analysed via the partial least squares-smart program to test the hypotheses.
Findings
Using MVT by the audit client leads to fundamental modifications to the accounting systems and raises the audit risks that come from the audit client, which are IR and CR. Furthermore, the risk that the auditor cannot be able to detect material misstatements increases, thus increasing the DR.
Research limitations/implications
The study did not address other risks, such as litigation risks, fraud risks and audit client business risks. This study also did not address the impact of the metaverse environment on the planning and implementation of the audit process.
Originality/value
The study makes several contributions. This is the first study to address the impact of audit clients’ use of MVT on assessing DRs and material misstatement risks, represented by both IR and CR. In addition, it provides an in-depth analysis of the causes of IR, CR and DR in the metaverse environment.