The Use of Computer-Aided Audit Tools in Forensic Auditing in Sri Lanka

Abstract

The present rapid speed of technology innovation presents challenges to the global business environment. Because most organizational operations are becoming heavily automated, internal auditors face a difficult work environment. Computer Assisted Audit Techniques (CAATs) are seen by auditors as having the potential to improve the efficacy and efficiency of their job. Recent research, however, indicates that auditors especially forensic auditors have less of a tendency to employ CAATs. Therefore, the purpose of this study is to determine the key factors influencing the degree of CAAT adoption among Sri Lankan forensic auditors. Additionally, the study seeks to determine how much such factors influence internal auditors' adoption of CAATs. Significant concepts were found that relate to the well-known Unified Theory of Acceptance and Use of Technology (UTAUT) paradigm, which was created in the field of information systems. Information was gathered from 46 forensic auditors who work in audit firms with forensic divisions and who conduct forensic audits. The data obtained was statistically analyzed using SPSS software. Multiple regression analysis, correlation analysis, and descriptive statistics were used to analyze the data. The findings show a strong beneficial influence from performance expectations and facilitating conditions while effort expectancy and social influence were not. The findings revealed that the most used CAAT in forensic audit in Sri Lanka is Excel. Further, the findings imply that audit companies should foster a positive work environment by putting in place appropriate regulations, increasing managerial and technological infrastructure investments, and thus encouraging auditors to use CAATs.