Impact of Data Analytics Adoption on Audit Quality in the Public Sector Accounting Reporting

Abstract

This study investigates the impact of data analytics adoption on audit quality within the context of public sector accounting reporting in Nigeria, focusing specifically on federal government owned tertiary institutions. Drawing on survey data from 98 audit professionals across 130 institutions, the research employs quantitative analysis, including T-tests, to evaluate the effects of data analytics on key dimensions of audit quality: timeliness of financial reporting, audit risk assessment, and resource allocation efficiency. The findings reveal that data analytics significantly enhances the timeliness and accuracy of financial statement reporting, improves the effectiveness of risk assessments, and optimizes resource allocation in audit processes. Despite these positive outcomes, challenges such as limited digital infrastructure and skill gaps among auditors persist. The study concludes that the adoption of data analytics in public sector accounting reporting significantly enhances audit quality by improving the timeliness of financial reporting, strengthening risk assessment, and optimizing resource allocation, thereby fostering greater transparency and accountability in Nigeria’s federal government-owned tertiary institutions. It is therefore, recommended that federal government owned tertiary institutions in Nigeria invest in continuous auditor training, robust technological infrastructure, and supportive regulatory frameworks to fully leverage data analytics for enhanced audit quality and improved public sector financial reporting.