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

• Published in: International journal of accounting information systems 2020-03, Vol.36, p.100445, Article 100445
• Main Authors: Siew, Eu-Gene, Rosli, Khairina, Yeow, Paul H.P.
• Format: Article
• Language: English
• Subjects: CAATTs adoption; clients' AIS complexity; Organizational and environmental factors; Professional accounting bodies; Technology-organization-environment framework (TOE)
• ISSN: 1467-0895; 1873-4723
• DOI: 10.1016/j.accinf.2019.100445

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. •Computer-assisted audit tools and techniques (CAATTs) adoption in developing countries is low.•Developed a research model based on the Technology-Organization-Environment framework.•Found organizational and environmental factors explained CAATTs adoption.