Auditing and Data Analytics Via Computer Assisted Audit Techniques (CAATS)

Abstract

Internet of things has revolutionized the way audit work is conducted. Computer Assisted Auditing Techniques (CAATs) has emerged as a data analytics tool to assist auditors in their search for irregularities within data files, which helps for further analysis and fraud detection. For years, auditors have been using office tools, such as spreadsheets and word processing that only touches the surface of complex processes and tasks. As audit becomes a crucial aspect which reflects the efficiency of a company, CAATs helps auditors to analyse and visualise larger amount of data. Adoption of CAATs in audit firms comes with a lot of advantages. However, lack of local evidences regarding the evaluation of cost-benefit and advantages from investments on CAATs had led auditors to remain working with traditional audit. This study therefore aims to identify factors that influence the intention of auditors to adopt CAATs in their audit process using Unified Theory of Acceptance and Use of Technology (UTAUT). Using questionnaire survey as the instrument, the study indicated that behavioural intentions of auditors to adopt CAATs in Malaysia are driven by the auditors' performance expectancy, effort expectancy and facilitating conditions. Results from the study had entrenched that these individual factors could influence auditors' behavioural intention to adopt the usage of CAATs for their audit firms. Besides, these findings have potential implication on auditors to provide awareness on the detection of fraud via technology utilisation.