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This study aims to examine the behavioral intention and the usage of Computer-Assisted Audit Techniques (CAATs) in external auditing by extending the original Unified Theory of the Acceptance and Use of Technology (UTAUT) Model.

A quantitative research approach is used in this study and 474 responses were secured from external auditors through a self-administered questionnaire, which was analyzed using structural equation modeling.

Findings reveal that lower Perceived Risk (PR) and Anxiety (AN) of external auditors, which were two constructs that we additionally introduced, contributed as the highest impact factors to the increased intention to use CAATs in external audits. In addition, all other determinants that were introduced [i.e. Self-efficacy (SE), Attitude toward Technology (AT), Perceived Credibility (PC) and Trust (TR)] had a positive impact on the intentions to use CAATs. However, social influence surprisingly negatively influenced the intentions to use CAATs and was positively moderated by Voluntariness (VO). Furthermore, Performance Expectancy (PE) and Effort Expectancy (EE) were also observed to have a positive impact on intentions to use CAATs in external auditing. Moreover, Facilitating Conditions (FC) and Intentions to Use (IU) CAATs were noted to have positive influences on the Actual Use (AU) of CAATs.

The present study extended the UTAUT model by introducing relevant additional constructs: SE, PR, AT, AN, PC and TR, and examined the impact of these on the intention to use CAATs, and subsequently such intentions on the actual use of CAATs in external auditing, with several implications.

Computer assisted audit techniques (CAATs) encompass a range of computerized techniques that internal and external auditors use to facilitate their audit objectives. One of the most important CAATs is generalized audit software (GAS), which is a class of packaged software that allows auditors to interrogate a variety of databases, application software and other sources and then conduct analyzes and audit routines on the extracted or live data. This study seeks to evaluate the nature and extent of the utilization of CAATs in financial institutions. In particular, the study establishes the extent and nature of use of GAS by bank internal auditors and their external auditors. The study is conducted with large local and international commercial banks in Singapore, a major financial center. Given the limited research on GAS in general and in the financial services sector in particular, the study uses exploratory qualitative research.

Qualitative research employing depth interviews with internal and external auditors of financial institutions.

The research finds that the extent and range of use of GAS varies widely between the institutions in the sample. Internal auditors see GAS primarily as a tool for special investigations rather than as a foundation for their regular audit work. External auditors make no use of GAS, citing the inapplicability of this class of tool to the nature of testing the financial statement assertions or the extent or quality of computerized internal controls maintained by the bank.

This is a small sample study. While the data are rich, the findings cannot necessarily be extrapolated to broader populations.

This study provides guidance on the role that CAATs play in the audit process of financial institutions that is relevant for the audit community.

This is the first in‐depth study of the application of CAATs to financial institutions.

The purpose of this study is to investigate the determinants and the intention to use information technology (IT) audit technologies.

The research model explores the external and internal factors that influence IT audit usage in Saudi Arabia. The external factors include IT audit education, professional support provided by professional accounting and auditing bodies, external pressure and social factors. The internal factors include the firm’s organizational support, complexity of accounting information systems, IT audit competency, adoption risk, ease of use and readiness. These factors affect the intention to use IT audits, represented by the perceived benefits and intention to use IT audits, which in turn affect IT audit usage. The study uses structural equation modelling to estimate a sample size of 261 respondents.

The findings suggest that internal factors significantly influence both IT audit usage and intention to use IT audits. However, the external factors exhibit insignificant associations with IT audit usage. The findings also indicate that IT auditors in Saudi Arabia heavily rely on Microsoft Excel, Microsoft Word and email/Outlook as essential IT audit tools. However, the findings reveal that there is still a role for specialized IT audit tools such as generalized audit software and Audit Command Language but this usage is marginal.

The present study provides significant insights for auditors, companies’ boards, professional bodies and policymakers to enhance the development and usage of IT audits. The study revealed the absence of supportive external factors that policymakers and professional bodies should exercise in this regard. The findings also indicate that IT audit education and capacity programmes are required to promote competency and adoption of IT audit technologies.

The study contributes to IT auditing by identifying significant factors influencing IT audit adoption. It underlines the relevance of internal and external determinants and perceived benefits as drivers of IT audit adoption. The current study provides an original piece of research that highlights a comprehensive investigation of the determinates of IT audit usage in a developing country that is shifting towards artificial intelligence and IT advancements.

Financial statements are not as important to investors as they once were, as technology has changed the way companies create value today. While these changes pose serious threats to the economic viability of auditing, they also create new opportunities for auditors to pursue. Both the American Institute of Certified of Public Accountants and the Canadian Institute of Chartered Accountants (CICA) Task Force on Assurance Services have identified continuous auditing as a service that should be offered. Continuous auditing is significantly different from an annual financial statement audit. A latest research report produced by the CICA defines a continuous audit as: “a methodology that enables independent auditors to provide written assurance on a subject matter using a series of auditors’ reports issued simultaneously with, or a short period of time after, the occurrence of events underlying the subject matter.” However, continuous auditing would present significant technical hurdles. These technical hurdles could be overcome if certain conditions exist. Computer‐assisted audit tools (CAATs) are one of the conditions that must exist in order to conduct the continuous auditing. CAATs are defined as computer‐assisted tools that permit auditors to increase their productivity, as well as that of the audit function. Therefore, with the real‐time accounting and electronic data interchange popularizing, CAATs are becoming even more necessary. The demand for timely and forward‐looking information hints that the continuous audit will eventually replace the traditional audit report on year‐end results.

We expect an explosive application of these technologies to take place when they become mature and may further assist auditors in improving the quality of their work. How to use some of the computer‐assisted auditing techniques (CAATs) more effectively with the emerging information technologies.

Constructed an infrastructure with the support of emerging technologies. Electronic auditing (EA) framework–prepared and used with information technology, these examples are object‐oriented distributed middlewares, internet security technologies, and intelligent agents.

How a CPA may conveniently audit the loan account of a bank with EA framework. Demonstration/application.

Auditors will have to design one specialized audit software for each auditee's electronic data processing (EDP) system if the EDP system uses proprietary file formats or different operating systems. The EA has some limitations. This approach depends on distributed middlewares standards, i.e. CORBA, DCOM, or Java RMI, to enable the interconnections of the auditor's GAS^I, auditee's EDP systems.

This system emulates EDP applications in the banking industry and is based on the Common Object Request Broker Architecture (CORBA) architecture industrial standard.

How auditor could effectively apply existing CAATs with the support of the modern information technologies such as object‐oriented distributed middleware, internet security technologies, and intelligent agents. Furthermore, this article proposes a new auditing approach that we call EA. Application in banking and financial institution for auditing banks loan account.

The authors aim to examine whether the well-established unified theory of acceptance and use of technology can be effectively adapted for use in an external audit setting and whether the re-specified model holds under different levels of budget pressure.

This paper takes the form of a case study/questionnaire with Lisrel path modelling.

Results support the re-specified model.

The model should aid audit research by providing a platform for new research to explore more specific solutions to technology reluctance. The authors extend general TAM research through additional exploration of the theory and impact of social influence, a determinant that has shown inconsistent tendencies in prior studies. The authors address several limitations in past TAM research including the use of student participants and self-selection bias.

Firms must understand the implications of their policies and culture on the intention of audit teams to voluntarily utilize software. Technology can improve the efficiency and effectiveness of audit procedures, aid in the identification of fraud and lower litigation costs. Accounting firms have invested in the development of audit testing software and can only recoup these investments if the software is used.

The study is the first to completely model the intention to use technology in an external audit engagement with consideration of budget influences.

Community colleges are distinctive types of institutions and should not be looked upon as an extension of the high school nor as the lower years of a university. They are institutions in their own right with a special sensitivity to local needs. Local autonomy is critical to the development of the community colleges. A special emphasis is placed on practical experience in employing faculty members. The emphasis in these colleges is on teaching, not on research. Technical‐vocational programmes are recommended, supported and evaluated, by Advisory Committees of knowledgeable and highly interested laymen. University transfer courses are offered after close consultation with the universities. Adult Education (Extension) is a major emphasis of community colleges, with colleges operating at all hours of the day and week in order to meet local needs and interests. The community colleges stress the open door policy whereby mature students are given opportunities to prove themselves, although lacking formal educational requirements. The enrolment of part‐time students is increasing dramatically. Community colleges function in and out of warehouses, store fronts, playgrounds, old military, bases, etc. Community colleges have not provided educational programmes to any great extent via correspondence courses; however, the television medium is gaining in popularity. Community colleges are generally commuter colleges. Most colleges do not have student residences. Community colleges are more flexible and imaginative, less obstructed by, or interested in, traditional ways of doing things. Community colleges are faced with a shortage of funds as they attempt to meet their objectives.

The purpose of this paper is to explore the effects of emerging technology (technology adoption, perceived benefits, technological challenges and ease of use) and the auditing practice of accounting professionals.

The primary method of data collection was a questionnaire directed to newly practicing chartered accountants who are partners of sole proprietorship or partnership firms in India. The data were analyzed by using partial least squares structural equation modeling (PLS-SEM).

The findings revealed that there is a positive and significant relationship between characteristics of emerging technology (technology adoption, technological challenges and ease of use) and auditing practice, while factors of the perceived benefits had a negative relationship with auditing practice.

The study model would aid technology enabled audit research by giving a platform for a new study to investigate further detailed solutions to emerging information technology determinants.

This study illustrates how tools technique perceived benefit motivates sole proprietorship practicing auditors to adopt emerging technology- enabled auditing software for auditing client's financial statements. Further, this study has added to the information technology auditing literature and might add benefits to the numerous other audit firms to adopt in emerging technology tools their audit firm.

Audit firms, generally sole proprietorship and partnership firms, should be given enough awareness about the latest audit software tools to carry out their audit tasks efficiently.

The study findings highlight benefits of emerging technology-enabled auditing practice among owners/partners of the sole proprietorship or partnership firms, which is not extensively discussed in the prior studies. Furthermore, it broadens knowledge of perceived benefit, technological challenges and ease of use in technology-enabled audit software in the auditing and accounting literature.

The purpose of this paper is to explore the impact of technological change on the internal audit practices and skills requirements for internal auditors in an e-business environment.

Generalist internal auditors and specialist information technology (IT) internal auditors were surveyed online in ten countries, including the USA and the UK which, together, provided the majority of responses.

The results suggest a need for advanced IT-audit techniques in conducting the internal audit function, thereby increasing IT audit skill demands on generalist internal auditors. However, the results show a low confidence among internal auditors about their IT training and a continuing reliance upon IT audit specialists, rather than their own training/retraining.

The responses obtained in this study provide insight into both the status quo of the internal audit function, and to the changes that are needed to prepare generalist internal auditors for work in an e-business environment and, while the scale of the study limits the extent to which the findings may be generalized, they are consistent with the literature concerning the changing business environment and with the literature on resistance to change, suggesting that the issues revealed should be of concern.

The results reported in this paper are useful to internal auditing educators and regulators in their consideration of the skills needed by generalist internal auditors in e-business environment.

This study sheds light on a significantly growing area which remains relatively unexplored in the auditing-related literature, e-business audit. The study provides empirical evidence on challenges facing internal auditors in an e-business environment, thereby serving as a wake-up call, to both internal auditors and the professional bodies representing them, to defend their jurisdictional space against rival professional groups.