Key Determinants of Internal Auditors’ Usage of Computer Assisted Audit Techniques in Sri Lanka

Abstract

At present global business environment is challenged through the rapid pace of technological advancement. Thus, internal auditors are also experiencing with the challenging working environment as most of the functions of the organizations are extensively getting computerized. Auditors are in the view that Computer Assisted Audit Techniques (CAATs) may increase the efficiency and effectiveness of their work. However, recent studies shown that there is a less tendency among auditors (specially the internal auditors) to use CAATs. Thus, this study aims to identify the significant variables affecting to CAATs usage level among internal auditors in Sri Lanka. Further, the study aims to assess the extent to which those variables are affect the CAATs adoption by internal auditors. Important constructs were identified referring to the Unified Theory of Acceptance and Use of Technology (UTAUT) model which is a well-known theoretical model developed in information system field. Data were collected from 75 auditors from both Big 4 and local audit firms who are engaging with the internal auditing of corporations. Data analysis was conducted through descriptive statistics, correlation analysis and multiple regression analysis. Results indicate that Performance Expectancy, Effort Expectancy, Facilitating Conditions and Social Influence have significant positive impact. The results suggest that audit firms shall create a supportive environment while establishing proper policies, investing more on management and technical infrastructures and thereby drive the CAATs usage intention of auditors.