IDEAS home Printed from https://ideas.repec.org/a/eee/ijoais/v36y2020ics1467089518300411.html
   My bibliography  Save this article

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

Author

Listed:
  • Siew, Eu-Gene
  • Rosli, Khairina
  • Yeow, Paul H.P.

Abstract

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.

Suggested Citation

  • Siew, Eu-Gene & Rosli, Khairina & Yeow, Paul H.P., 2020. "Organizational and environmental influences in the adoption of computer-assisted audit tools and techniques (CAATTs) by audit firms in Malaysia," International Journal of Accounting Information Systems, Elsevier, vol. 36(C).
    • Handle: RePEc:eee:ijoais:v:36:y:2020:i:c:s1467089518300411
    DOI: 10.1016/j.accinf.2019.100445
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1467089518300411
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.accinf.2019.100445?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Phua Lian Kee & Siti Nabiha Abd. Khalid & Chee Hong Kok & Adeline Lau & Cheng Chai Yu, 2013. "Internet Technologies Usage by Audit Firms in Malaysia," Asian Academy of Management Journal of Accounting and Finance (AAMJAF), Penerbit Universiti Sains Malaysia, vol. 9(1), pages 47-66.
    2. Axelsen, Micheal & Green, Peter & Ridley, Gail, 2017. "Explaining the information systems auditor role in the public sector financial audit," International Journal of Accounting Information Systems, Elsevier, vol. 24(C), pages 15-31.
    3. Viswanath Venkatesh & Hillol Bala, 2012. "Adoption and Impacts of Interorganizational Business Process Standards: Role of Partnering Synergy," Information Systems Research, INFORMS, vol. 23(4), pages 1131-1157, December.
    4. Curtis, Mary B. & Payne, Elizabeth A., 2008. "An examination of contextual factors and individual characteristics affecting technology implementation decisions in auditing," International Journal of Accounting Information Systems, Elsevier, vol. 9(2), pages 104-121.
    5. Malcolm Smith & Zaharah Abdullah & Rafizan Abdul Razak, 2008. "The diffusion of technological and management accounting innovation: Malaysian evidence," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 16(3), pages 197-218, September.
    6. Kevin Zhu & Kenneth L. Kraemer, 2005. "Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry," Information Systems Research, INFORMS, vol. 16(1), pages 61-84, March.
    7. Dale Goodhue & William Lewis & Ronald Thompson, 2007. "Research Note---Statistical Power in Analyzing Interaction Effects: Questioning the Advantage of PLS with Product Indicators," Information Systems Research, INFORMS, vol. 18(2), pages 211-227, June.
    8. Jörg Henseler & Marko Sarstedt, 2013. "Goodness-of-fit indices for partial least squares path modeling," Computational Statistics, Springer, vol. 28(2), pages 565-580, April.
    9. Bierstaker, James & Janvrin, Diane & Lowe, D. Jordan, 2014. "What factors influence auditors' use of computer-assisted audit techniques?," Advances in accounting, Elsevier, vol. 30(1), pages 67-74.
    10. Mary B. Curtis & Elizabeth A. Payne, 2014. "Modeling voluntary CAAT utilization decisions in auditing," Managerial Auditing Journal, Emerald Group Publishing, vol. 29(4), pages 304-326, April.
    11. Gary C. Moore & Izak Benbasat, 1991. "Development of an Instrument to Measure the Perceptions of Adopting an Information Technology Innovation," Information Systems Research, INFORMS, vol. 2(3), pages 192-222, September.
    12. Hillol Bala & Viswanath Venkatesh, 2007. "Assimilation of Interorganizational Business Process Standards," Information Systems Research, INFORMS, vol. 18(3), pages 340-362, September.
    13. Quick, Reiner & Greenstein-Prosch, M. & McKee, T. E., 2008. "Competence in Information Technology: A Comparison of United States and German Auditors," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35715, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    14. Rindang Widuri & Brendan O’Connell & Prem W.S. Yapa, 2016. "Adopting generalized audit software: an Indonesian perspective," Managerial Auditing Journal, Emerald Group Publishing, vol. 31(8/9), pages 821-847, September.
    15. Nurmazilah Mahzan & Andy Lymer, 2014. "Examining the adoption of computer-assisted audit tools and techniques: Cases of generalized audit software use by internal auditors," Managerial Auditing Journal, Emerald Group Publishing, vol. 29(4), pages 327-349, April.
    16. Quick, Reiner & Greenstein-Prosch, M. & McKee, Thomas E., 2008. "A Comparison of the Information Technology Knowledge of United States and German Auditors," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 35702, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    17. Ronald A. Davidson & Dean Neu, 1993. "A Note on the Association between Audit Firm Size and Audit Quality," Contemporary Accounting Research, John Wiley & Sons, vol. 9(2), pages 479-488, March.
    18. Kim, Hyo-Jeong & Mannino, Michael & Nieschwietz, Robert J., 2009. "Information technology acceptance in the internal audit profession: Impact of technology features and complexity," International Journal of Accounting Information Systems, Elsevier, vol. 10(4), pages 214-228.
    19. Kevin Zhu & Kenneth L. Kraemer & Sean Xu, 2006. "The Process of Innovation Assimilation by Firms in Different Countries: A Technology Diffusion Perspective on E-Business," Management Science, INFORMS, vol. 52(10), pages 1557-1576, October.
    20. Gul, Ferdinand A. & Fung, Simon Yu Kit & Jaggi, Bikki, 2009. "Earnings quality: Some evidence on the role of auditor tenure and auditors' industry expertise," Journal of Accounting and Economics, Elsevier, vol. 47(3), pages 265-287, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Afsay, Akram & Tahriri, Arash & Rezaee, Zabihollah, 2023. "A meta-analysis of factors affecting acceptance of information technology in auditing," International Journal of Accounting Information Systems, Elsevier, vol. 49(C).
    2. Fumeng Li & Jiancheng Long & Wu Zhao, 2022. "Mining Braces of Innovation Linking to Digital Transformation Grounded in TOE Framework," Sustainability, MDPI, vol. 15(1), pages 1-18, December.
    3. Ghouri, Arsalan Mujahid & Mani, Venkatesh & Haq, Mirza Amin ul & Kamble, Sachin S., 2022. "The micro foundations of social media use: Artificial intelligence integrated routine model," Journal of Business Research, Elsevier, vol. 144(C), pages 80-92.
    4. Sreenivasan Jayashree & Mohammad Nurul Hassan Reza & Chinnasamy Agamudai Nambi Malarvizhi & Hesti Maheswari & Zohre Hosseini & Azilah Kasim, 2021. "The Impact of Technological Innovation on Industry 4.0 Implementation and Sustainability: An Empirical Study on Malaysian Small and Medium Sized Enterprises," Sustainability, MDPI, vol. 13(18), pages 1-23, September.
    5. Li, Lianying & Cheng, Ki, 2021. "Research on the adoption willingness of Internet of Things technology of Chinese large and specialized vegetable farmers based on integrated UTAUT model and TOE framework," 2021 ASAE 10th International Conference (Virtual), January 11-13, Beijing, China 329381, Asian Society of Agricultural Economists (ASAE).
    6. Krieger, Felix & Drews, Paul & Velte, Patrick, 2021. "Explaining the (non-) adoption of advanced data analytics in auditing: A process theory," International Journal of Accounting Information Systems, Elsevier, vol. 41(C).
    7. Ahmad Almagrashi & Abdulwahab Mujalli & Tehmina Khan & Osama Attia, 2023. "Factors determining internal auditors’ behavioral intention to use computer-assisted auditing techniques: an extension of the UTAUT model and an empirical study," Future Business Journal, Springer, vol. 9(1), pages 1-19, December.
    8. Pervaiz Akhtar & Arsalan Mujahid Ghouri & Haseeb Ur Rehman Khan & Mirza Amin ul Haq & Usama Awan & Nadia Zahoor & Zaheer Khan & Aniqa Ashraf, 2023. "Detecting fake news and disinformation using artificial intelligence and machine learning to avoid supply chain disruptions," Annals of Operations Research, Springer, vol. 327(2), pages 633-657, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abdalwali Lutfi & Hamza Alqudah, 2023. "The Influence of Technological Factors on the Computer-Assisted Audit Tools and Techniques Usage during COVID-19," Sustainability, MDPI, vol. 15(9), pages 1-22, May.
    2. Afsay, Akram & Tahriri, Arash & Rezaee, Zabihollah, 2023. "A meta-analysis of factors affecting acceptance of information technology in auditing," International Journal of Accounting Information Systems, Elsevier, vol. 49(C).
    3. Ahmad Almagrashi & Abdulwahab Mujalli & Tehmina Khan & Osama Attia, 2023. "Factors determining internal auditors’ behavioral intention to use computer-assisted auditing techniques: an extension of the UTAUT model and an empirical study," Future Business Journal, Springer, vol. 9(1), pages 1-19, December.
    4. Farida Veerankutty & Thurasamy Ramayah & Noor Azman Ali, 2018. "Information Technology Governance on Audit Technology Performance among Malaysian Public Sector Auditors," Social Sciences, MDPI, vol. 7(8), pages 1-19, July.
    5. Aboelmaged, Mohamed Gamal, 2014. "Predicting e-readiness at firm-level: An analysis of technological, organizational and environmental (TOE) effects on e-maintenance readiness in manufacturing firms," International Journal of Information Management, Elsevier, vol. 34(5), pages 639-651.
    6. Wenjuan Xu & Peiyu Ou & Weiguo Fan, 2017. "Antecedents of ERP assimilation and its impact on ERP value: A TOE-based model and empirical test," Information Systems Frontiers, Springer, vol. 19(1), pages 13-30, February.
    7. Bierstaker, James & Janvrin, Diane & Lowe, D. Jordan, 2014. "What factors influence auditors' use of computer-assisted audit techniques?," Advances in accounting, Elsevier, vol. 30(1), pages 67-74.
    8. Manoj Thomas & Daniela Costa & Tiago Oliveira, 2016. "Assessing the role of IT-enabled process virtualization on green IT adoption," Information Systems Frontiers, Springer, vol. 18(4), pages 693-710, August.
    9. Federica De Santis, 2018. "Big Data e revisione contabile: uno studio esplorativo nel contesto italiano," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2018(2), pages 129-154.
    10. Chin-Lung Hsu & Judy Chuan-Chuan Lin, 2016. "Factors affecting the adoption of cloud services in enterprises," Information Systems and e-Business Management, Springer, vol. 14(4), pages 791-822, November.
    11. Arun Rai & Xinlin Tang, 2010. "Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios," Information Systems Research, INFORMS, vol. 21(3), pages 516-542, September.
    12. Nor Nadia Normahazan & Intan Salwani Mohamed & Nabilah Rozzani, 2020. "Drivers Contributing to the Implementation of Generalized Audit Software (GAS) within Audit Firms in Malaysia," Business and Economic Research, Macrothink Institute, vol. 10(2), pages 341-354, June.
    13. Wallbach, Sören, 2020. "Assimilation and Diffusion of Multi-Sided Platforms in Dynamic B2B Networks: Inhibiting Factors and Their Consequences," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 123277, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    14. Zhang, Cheng & Dhaliwal, Jasbir, 2009. "An investigation of resource-based and institutional theoretic factors in technology adoption for operations and supply chain management," International Journal of Production Economics, Elsevier, vol. 120(1), pages 252-269, July.
    15. Stanislav Kreuzer, 2017. "Explaining organizational susceptibility to coercive pressure: results from a field experiment on e-invoicing IOIS adoption," Information Systems and e-Business Management, Springer, vol. 15(1), pages 159-195, February.
    16. Alkhatib, Esra'a & Ojala, Hannu & Collis, Jill, 2019. "Determinants of the voluntary adoption of digital reporting by small private companies to Companies House: Evidence from the UK," International Journal of Accounting Information Systems, Elsevier, vol. 34(C), pages 1-1.
    17. Gonzalez, George C. & Sharma, Pratyush N. & Galletta, Dennis F., 2012. "The antecedents of the use of continuous auditing in the internal auditing context," International Journal of Accounting Information Systems, Elsevier, vol. 13(3), pages 248-262.
    18. Dehghani, Milad & William Kennedy, Ryan & Mashatan, Atefeh & Rese, Alexandra & Karavidas, Dionysios, 2022. "High interest, low adoption. A mixed-method investigation into the factors influencing organisational adoption of blockchain technology," Journal of Business Research, Elsevier, vol. 149(C), pages 393-411.
    19. Sanjith Gopalakrishnan & Moksh Matta & Hasan Cavusoglu, 2022. "The Dark Side of Technological Modularity: Opportunistic Information Hiding During Interorganizational System Adoption," Information Systems Research, INFORMS, vol. 33(3), pages 1072-1092, September.
    20. Sherry Fang Li & Sherry Fang Li, 2020. "Cost Of Debt And Auditor Choice," Accounting & Taxation, The Institute for Business and Finance Research, vol. 12(1), pages 35-44.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ijoais:v:36:y:2020:i:c:s1467089518300411. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/international-journal-of-accounting-information-systems/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.