Abstract
Background - Data analytics can support the external auditors' judgements. However, little is known about the external auditors' data analytics competency. Likewise, role of religiosity in enhancing the external auditors' performance is also inadequately investigated. This study examined: 1) the effects of data analytics competency on the external auditors' performance, and 2) the moderating effects of religiosity on data analytics competency and external auditors' performance relationship. Methods - Survey was conducted on 201 external auditors. Data analytics competency dimensions, namely, personal capabilities, professional expertise, technical skills, technologies and tools expertise were examined. Religiosity was measured by level and dimension (faith, virtue and optional). Results - Data analytics competency (personal capabilities) has a significant positive effect on the Muslim external auditors' performance, whereas data analytics competency (technologies and tools expertise) has a significant positive affect on the non-Muslim external auditors' performance.Level of religiosity has significant moderating effect on the relationship between data analytics competency (technologies and tools expertise) and Muslim external auditors' performance. Nonetheless, level of religiosity does not moderate the relationship between data analytics competency and the performance of non-Muslim external auditors. Religiosity (virtue) has significant moderating effect on the relationship between data analytics competency (personal capabilities) and Muslim external auditors' performance. Meanwhile, religiosity (faith) has a significant moderating effect on the relationship between data analytics competency (technologies and tools expertise) and non-Muslim external auditors' performance. Conclusion - This study demonstrates that data analytics competency and religiosity can influence the external auditors' performance.
Highlights
In this Fourth Industrial Revolution era, external auditors (EAs) are expected to acquire data analytics competency (DAC) because it can strengthen audit quality (e.g. ICAEW, 2016; Goh, 2017)
Exploratory factor analysis (EFA) was performed to identify the latent constructs of religiosity, and means analysis was used to determine the level of religiosity
DAC and performance For Muslim EAs, the result exhibited a close to moderate level of R square (42.2%) which signified that variation of the Muslim-external auditors’ performance (EAP) was almost moderately explained by their DAC
Summary
In this Fourth Industrial Revolution era, external auditors (EAs) are expected to acquire data analytics competency (DAC) because it can strengthen audit quality (e.g. ICAEW, 2016; Goh, 2017). Evidence regarding the DAC of EAs and its impact on the external auditors’ performance (EAP) is limited (Yeo & Carter, 2017). CPT establishes a connection between competency (e.g. skills and abilities) and performance level. This theory aids in the prediction of performance outcomes and provides an explanation for performance discrepancies. Applying CPT to this study, perceived DAC (in terms of personal capabilities, professional expertise, technical skills, and technologies and tools expertise) help to predict the performance of the external auditors. The theory explains that the discrepancies in the external auditors’ performance could be contributed by their level of DAC. This study hypothesises: H1a: DAC (personal capabilities) has positive effects on the Muslim/non-Muslim-EAP
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