The readiness of Jordanian-listed firms toward CAATTs application in the post Covid-19 epidemic period

Abstract

This study examines the readiness of Jordanian-listed firms toward the application of Computer Assisted Audit Tools and Techniques (CAATTs) during the post-Covid-19 epidemic period. In particular, this study investigates the auditee perspective regarding the factors impacting the adoption of CAATTs based on the Organizational Readiness for Change (ORC) and the Technology Readiness Index (TRI) models. A cross-sectional survey was developed and distributed to 138 employees working in the accounting departments of Jordanian-listed firms. Partial least square structural equation modeling (PLS-SEM) was employed as the statistical analysis method to examine the study hypotheses. The results show a significant direct relationship of motivation for change, staff attributes, institutional resources, organizational climate and discomfort on readiness for change. Moreover, the results reveal that perceived fear of Covid-19 has a moderating effect on the direct relationship between motivation for change and readiness for change. However, the proposed relationships between optimism, innovativeness, and insecurity with readiness for change were not significant. This paper highlights the readiness toward CAATTs application from the auditee perspective rather than the external auditors. Moreover, this paper considers the changes in the work environment resulting from the Covid-19 pandemic on the motivation for change toward CAATTs. Lastly, the paper reveals the moderating role of perceived fear of Covid-19 on the influence of motivation for change on readiness to change. Hence, this paper set the basis for policymakers and practitioners toward evaluating the readiness of Jordanian-listed firms for CAATTs application.