The Impact of Continuous Auditing on Reducing Audit Risk from the Perspective of External Auditors: A Field Study on Audit Firms in the Kingdom of Saudi Arabia

Abstract

This study aimed to identify the impact of Continuous Auditing across its three dimensions (Procedural and Temporal Efficiency, Continuous Monitoring, and Behavioral and Organizational Compliance) on reducing audit risks within the Saudi business environment. To achieve this, the study adopted a descriptive-analytical approach. The study population consisted of all external auditors in audit firms and offices in the Kingdom of Saudi Arabia. The studies sample consisted of (182) external Auditors. A questionnaire was used as the data collection tool. Data were statistically analyzed using SPSS. The results showed a statistically significant positive (direct) effect of all dimensions of continuous auditing on reducing audit risk, with a correlation coefficient of (R = 0.992) and a coefficient of determination (R² = 0.985). The results also indicated that the "procedural and time efficiency" dimension had the greatest impact on reducing audit risk, followed by the "continuous control" dimension, and then the "behavioral and organizational compliance" dimension, with beta values of 0.399, 0.339, and 0.312, respectively. Furthermore, the results revealed variations in the evaluation of continuous audit dimensions based on the demographic characteristics of the respondents. Statistically significant differences were found in the "efficiency" dimension attributable to the educational qualification variable, favoring those with a master's degree. Similarly, in the "control" and "behavioral compliance" dimensions, differences were found attributable to the specialization variable, favoring those specializing in accounting. The study recommends that audit firms adopt continuous audit techniques as a strategic option to reduce the risk gap, with an intensive focus on raising procedural and time efficiency as the strongest and most influential driver of audit quality.