Computer Assisted Audit Tools And Techniques Research Articles

The Influence of Technological Factors on the Computer-Assisted Audit Tools and Techniques Usage during COVID-19

There is minimal level of use of Computer-Assisted Audit Tools and Techniques (CAATTs) in developing nations regardless of its importance to audit productivity and cost reduction, and this holds particularly true in the public sector entities’ internal audit departments. Accordingly, this article aims to explore how technological factors, such as relative advantage, complexity, compatibility, observability, and trialability, contribute to the use of CAATTs in Jordan’s public sector internal audit during the COVID-19 pandemic and the impact of the pandemic on the profession’s outcome. The study also seeks to evaluate how the use of these tools affects the effectiveness of internal auditing, with the IT knowledge of the auditors serving as a moderating variable. This study used 91 usable responses from the internal audit managers of Jordanian public sector institutions. The study used the Diffusion of Innovation (DOI) theory to develop the proposed research model. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study result indicated that technological factors, with the exception of complexity, had a positive and significant effect on CAATTs use in the public sector internal audit departments. Based on the findings, using CAATTs has a positive and significant effect on internal audit effectiveness and IT knowledge has a positive moderating effect on the relationship between CAATTs usage and internal audit effectiveness. Owing to the public sector significance to the economy of Jordan, the findings have implications for the internal audit profession, regulators, and decision-makers in proposing new legislation and regulations when it comes to internal audit. Further, through the lens of the social implications, this study proposed that CAATTs usage in public sector institutions can positively improve their capability to reach the role of internal audit in protective public funds and limiting corrupt practices in the public sector. The paper contributes to theory by providing insight into the effect of factors on the use of CAATTs in the public sector of Jordan. This study, to the best of the author’s knowledge, is the first study that has tackled the moderating role of auditors’ IT knowledge on the CAATTs use–internal audit effectiveness relationship in the public sector context.

USER’S PERCEPTION ON THE ADOPTION OF COMPUTER-ASSISTED AUDIT TOOLS AND TECHNIQUES (CAATTS) IN DETECTING FRAUD AMONG DEPOSIT MONEY BANKS

Innovations in information technology have increased the demand for computer-assisted approaches in carrying out audit functions in organizations. In the banking industry, the use of computer-assisted audit tools and techniques (CAATTs) by auditors in combating fraud has become necessary, in the face of emerging challenges. Therefore, this study seeks to assess perceptions on the adoption of CAATTs in fraud detection among deposit money banks (DMBs) in Nigeria. A structured questionnaire on the study variables was developed and a research survey approach was used to harvest information from auditors and audit managers in 20-listed DMBs and the big-four audit firms in Nigeria. One hundred and ninety-nine copies of the questionnaire were properly filled and the data were analyzed using frequency tables, histogram, bar-chart, and the Kruskal–Wallis test, all with the aid of the Statistical Package for the Social Science. The result of the analysis revealed a moderate adoption of CAATTs among the banks. Further results indicated that the educational level of auditor is a major social-demographic variable influencing adoption of CAATTs. The study concludes that educational exposure is a determining factor in the adoption of CAATTs for fraud detection among banks in Nigeria. The study recommends that policymakers and practitioners in the banking sector should include CAATTs into present auditing practices and future laws.

Digital affordances and remote public audit practice

AbstractAs public sector organizations are undergoing a digital transformation, public auditing is increasingly relying on technology to enable it to collect and analyze large amounts of data. We analyze how the introduction and development of digital artifacts in a governmental audit setting end up affording audit practices. Focusing on the introduction of computer‐assisted audit tools and techniques (CAATTs) developed by Courts of Accounts in Brazil, our findings indicate that the digital infrastructure maintained by each Court in Brazil is the material center of a dominant frame of remote compliance audit practice. Besides CAATTs’ interface, scripts and algorithms in the infrastructure's backstage also add to the affordance of the digital devices used by auditors—that is, auditors’ action possibilities molded by technology. Through interviews with governmental auditors, we provide evidence on how CAATTs afford their practices while showing that auditors are not fully aware of how their skepticism and autonomy are being affected by the introduction of such devices and by the reinforcement of remote audit practice.

Examining the critical factors of computer-assisted audit tools and techniques adoption in the post-COVID-19 period: internal auditors perspective

PurposeIn light of the repercussions of the COVID-19 pandemic, electronic auditing otherwise known as computer-assisted audit tools and techniques (CAATTs) has become inevitable to automate the auditing process worldwide. Accordingly, the purpose of this study is to examine the influence of technological, organizational and environmental (TOE) factors on public sector adoption of CAATTs in developing countries such as Jordan under the COVID-19 pandemic conditions.Design/methodology/approachThis study used 136 usable responses from the managers of internal audit (IA) of the Jordanian public sector entities. The data collected were analyzed using partial least squares-structural equation modeling. The TOE framework has been used in this study to consider a wide set of TOE factors. Then, this study suggests a CAATTs adoption model that incorporates the related technology factors of the diffusion of innovation theory to environmental and organizational factors. Further, this study contributes to the TOE framework by addressing government regulations, audit bodies’ support and audit task complexity as environmental factors affecting CAATTs adoption in the context of the public sector.FindingsThe results revealed that for technological factors, only the compatibility affects CAATTs adoption by the IA departments. For organizational factors, organizational readiness, top management support, auditors’ information technology competency and entity size were found to be significant factors. From the environmental factors, both government regulation and audit task complexity influence the CAATTs adoption. Besides, entity size moderates the influence of top management support on the CAATTs adoption in the public sector.Practical implicationsThe findings could highlight the significance of the CAATTs adoption in the public sector institutions (by internal auditors) post-COVID-19, taking into consideration the TOE framework’s factors. Also, the findings are significant for the decision-makers and regulators in declaring new legislation for the electronic IA profession in the Jordanian public sector.Social implicationsIt turns out that the CAATTs adoption in the public sector can definitely enhance their ability to achieve the role of IA in preserving public funds and restricting corrupt practices within the public sector.Originality/valueTo the best of the authors’ knowledge, this study is one of the first studies that address the professional audit agency support and audit task complexity as environmental factors, as well as the entity size as an organizational factor, that affect CAATTs adoption in the IA department of the public sector.

Effect of Computer Assisted Audit Tools on Corporate Sustainability

The literature is fertile in studies that examine the determinants of internal and external auditors’ adoption of computer-assisted audit tools and techniques (CAATs), often ignoring their practical effects on audit quality and organizational performance. This study provides novel evidence on the type of CAATs used by internal auditors, tests the effect of their adoption on corporate sustainability, and explores the moderating effect of organizational characteristics. In this paper, we used data from Portuguese internal auditors collected through a survey, whose research hypotheses were analyzed by the partial least squares–structural equation modeling technique. We found that internal auditors use CAATs moderately in the exercise of their tasks. The results of our study show that there is a strong and positive effect of the use of CAATs by internal auditors on fraud detection in the purchase-to-pay business process, and that the intensity of this relationship is not influenced by the type and size of the entity. This study complements previous research and provides support to practitioners’ decisions that can boost the use of CAATs in internal auditing to make organizations more sustainable.

Determinants of adoption of computer‐assisted audit tools and techniques among internal audit units in Ghana

AbstractThis study investigates the determinants of adoption of computer‐assisted audit tools and techniques (CAATTs) among internal audit units in Ghana. Data for the study was drawn from a sample of 75 private and state‐owned enterprises through questionnaires while the partial least squares structural equation modeling was employed to analyze and test the hypotheses. The findings indicate that albeit CAATT adoption within internal audit units is fairly high, the actual usage in the areas of risk assessment, fraud detection, substantive testing, and analytical procedures are still low. Using the extended technology‐organization‐environment (TOE) framework, results show that CAATT behavioral intention is driven by technological readiness, organizational readiness, and environmental readiness but not personal innovativeness. In addition, CAATT behavioral intention influences CAATT adoption among the internal audit units. The findings provide valuable insights to management, heads of audit units, policymakers, and regulators on ways to improve the adoption and use of CAATT. Firms should invest more in training workshops on big data analytics, hiring more data scientists or data engineers, and equipping internal audit units with the information technology infrastructure. The paper complements prior research by applying a hierarchical component modeling technique to the extended TOE framework to investigate CAATT adoption in internal audits.

Information Technology Adoption within Internal Auditing in Ghana: Empirical Analysis

This study investigates the determinants of adoption of Computer-Assisted Audit Tools and Techniques (CAATTs) among internal audit units in Ghana. Data for the study was drawn from a sample of 75 private and state-owned enterprises through questionnaires while the partial least squares structural equation modelling (PLS-SEM) was employed to analyse and test hypotheses. The findings indicate that albeit CAATT adoption within internal audit units is fairly high, the actual usage in the areas of risk assessment, fraud detection, substantive testing and analytical procedures are still low. Using the Technology-Organisation-Environment (TOE) framework results show that CAATT behavioural intention is driven by factors such as technological readiness, organisational readiness and environmental readiness but not personal innovativeness. Also, CAATT behavioural intention influences CAATT Adoption among the internal audit units. The findings provide valuable insights to management, heads of audit units, policymakers and regulators on ways to improve the adoption and use of CAATT.

Organizational and environmental influences in the adoption of computer-assisted audit tools and techniques (CAATTs) by audit firms in Malaysia

Despite the usefulness of computer-assisted audit tools and techniques (CAATTs) in increasing audit productivity and reducing costs, their adoption by audit firms is low in developing countries. The aim of this study is to investigate whether organizational and environmental factors can help explain CAATTs adoption in less developed countries, such as Malaysia. The research framework was developed based on the Technology-Organization-Environment framework (TOE). The results reveal that for environmental factors, the complexity of clients' accounting information systems (AIS) and perceived level of support of professional accounting bodies (PABs) affect CAATTs adoption. For organizational factors, firm size, top management commitment and employee IT competency were found to be significant factors. Moreover, firm size partially moderates the influence of clients' AIS complexity on CAATTs adoption. This paper contributes to existing adoption theory by extending our understanding of the impact of factors unique to CAATTs adoption.

Examining CAATTs Implementation by Internal Auditors in the Public Sector

Computer Assisted Audit Tools and Techniques (CAATTs) are not new for auditors, and it needs to be adopted to gain the audit efficiency and effectiveness especially in a current era of technology. This paper examined the implementation of CAATTs by internal auditors in the public sector. Accordingly, this research reports the results from 12 interviews made with internal audit departments in public sector in both federal and state level in Malaysia. This research found that the implementation of CAATTs by internal auditors in public sector is still low due to lack of expertise, high implementation and maintenance cost, limited access of auditee’s data, and most of them prefer to conduct the audit manually. Furthermore, it is not mandatory for them to use CAATTs. The evidence is a contrast with the encouragement made by the government to improve the IT usage in public sector. The results implied that training for future auditors in CAATTs to ensure the successful implementation is crucial. For CAATTs to be a success, the head of internal audit also must have the awareness about the importance of CAATTs as well as enforcement of its implementation.

Tecnologías de información y comunicaciones en el control fiscal colombiano

En los últimos años se han evidenciado grandes cambios tecnológicos en las organizaciones, que han transformado el proceso de auditoría: de una basada en procesos análogos, a una influenciada de manera radical por las Tecnologías de Información y Comunicaciones, que se materializa en diferentes técnicas y herramientas de auditoría agrupadas en lo que la literatura académica denomina Computer Assisted Audit Tools and Techniques (CAATT). Este artículo presenta una revisión de la evolución del uso de Tecnologías de Información y Comunicaciones en el ámbito de la auditoría, y las principales perspectivas al respecto; esto servirá de preámbulo al análisis de las herramientas tecnológicas que usan las Contralorías del país en cumplimiento de su función fiscalizadora. Se concluye que existe un Control Fiscal cuyas herramientas y procesos tecnológicos han sido enfocados en una auditoría con y alrededor del computador, pero que no ha avanzado hacia una auditoría a través del computador.

What factors influence auditors' use of computer-assisted audit techniques?

To meet the challenges of rapid advances in client technology, audit standards urge auditors to use computer-assisted audit tools and techniques (CAATs). However, recent research suggests that CAAT use is fairly low. This paper uses the Unified Theory of Acceptance and Use of Technology (UTAUT) to identify and then examines factors potentially influencing auditors' use or non-use of CAATs. Examining auditor use of CAATs is important because CAATs hold out the promise of improving audit efficiency and effectiveness. Data was obtained from 181 auditors from Big 4, national, regional, and local firms. Results indicate that outcome expectations, the extent of organizational pressures and technical infrastructure support influence the likelihood that auditors will use CAATs.

The utilisation of generalized audit software (GAS) by external auditors

Purpose – Generalized audit software (GAS) is the tool use by auditors to automate various audit tasks. As most accounting transactions are now computerized, auditing of accounting data is also expected to be computerized as well. While GAS is the most popular of computer assisted audit tools and techniques (CAATTs), research shows that there is little evidence that GAS has been universally adopted by external auditors. The purpose of this paper is to investigate the utilization of GAS by external auditors in the UK. The paper focuses on small and medium‐sized audit firms in the UK whereas most other GAS studies have examined “Big 4” firms. Registered statutory auditors have been selected as a sample.

IT auditing activities of public sector auditors in Malaysia

Information technology (IT) has become an increasingly important tool for the Malaysian government to improve the delivery of its services. However, advances in information technology continuously render control procedures obsolete. Indispensably audit methodology has to evolve to keep abreast with the change in technology. This study investigates the IT practices of the public sector auditors in Malaysia. We examine IT evaluation based on IT audit objectives, organisational characteristics, competency of auditor and usage of Computer Assisted Audit Tools and techniques (CAATTs). Self-administered questionnaires were mailed to 400 public sector auditors providing a usable sample size of 73. The results show that application processing control and data integrity, privacy and security control were the most frequent evaluations performed by public sector auditors. The most frequent IT audit objective is the evaluation of compliance with policies, procedures and evaluation of internal control and these objectives are performed differently in different divisions. CAATTs have been used most frequently as a problem solving aid. Several appealing patterns emerged from the eight regression models. The findings provide important implications for research on IT and public sector auditing. Key words: IT auditing, public sector auditing, public sector auditors.

Embracing Technology in Auditing Courses: Opportunities, Methodology and Challenges

The usage of technology in auditing has evolved since the 1950s and the density is growing exponentially. Auditing technology refers to any tool that can enhance the auditor’s capacity to perform an audit task. The most prominent type of audit technology being used is generalized audit (GAS) under the category of computer-assisted audit tools and techniques (CAATTs). Consistent with the proliferation of GAS usage in auditing, graduates are expected to possess sufficient knowledge and skills pertaining to these tools in order to meet the demand by the auditing profession. However, many universities outside America that offer auditing subjects have yet to integrate audit technology into the teaching of these courses. Consequently, the graduates’ awareness and skills in using the audit technology is very limited. This study has twofold objectives. First, it explores the opportunities, methodologies and challenges in incorporating GAS into the teaching of auditing courses to accounting undergraduates through review of extant literature. Second it analyses the effect of the teaching methodology that we choose on the students’ learning process. Data on the students’ responses are collected using survey questionnaires as well as students’ test performance. Our preliminary findings reveal that students responded positively towards the opportunity and benefits of GAS in the auditing process. We employed hands-on practical usage of the software during tutorial classes as a methodology to impart GAS usage skills. Among the challenges encountered were the assessment method, software availability and licensing.

Computer‐assisted audit tools and techniques: analysis and perspectives

In light of the increasing demand on auditors to make the audit more effective and efficient, this paper presents a brief summary of the most prominent computer assisted audit tools and techniques (CAATTs), which auditors can use to increase audit efficiency and effectiveness. Additionally, the results of a survey of governmental auditors which inquired about their perceptions of a specific type of CAATTs (generalized audit software proxied by the use of Audit Control Language or ACL) are presented. Results show that auditors seemed to perceive the potential benefits associated with ACL; however, they displayed a lower confidence in their technical abilities in using the application. Also, the auditors surveyed expressed a desire to increase their skills through increased ACL training. Taken together, these results give audit decision makers evidence that additional technical training is needed and desired by auditors.