Factors Affecting the Adoption of Computer-Assisted Audit Techniques in Sri Lanka: The External Auditor’s Perception

Abstract

This study focuses on the adoption of Computer Assisted Audit Techniques (CAATs) by external auditors in Sri Lanka, including auditor’s perception and factors that influence their adoption. The study uses the Unified Theory of Acceptance and Use of Technology (UTAUT) as a theoretical framework to investigate the impact of four main dimensions on auditors' intention to use CAATs: performance expectancy, effort expectancy, social influence, and facilitating conditions. Data was collected through a survey from a convenience sample of 100 auditors employed by Sri Lanka's big four audit firms. The data was analyzed using a regression model and SPSS software. The findings reveal that all four independent variables have a significant and positive impact on auditors' intention to adopt CAATs. The most significant factor was found to be the Facilitating Condition, followed by Social Influence, Performance Expectancy, and Effort Expectancy. Notably, Effort Expectancy had a lower impact on CAAT adoption. The findings will help to improve the acceptance of CAATs. Understanding auditors' perceptions of CAATs can lead to more efficient and timely audits, enhanced service quality, cost savings, up-to-date policy development, and strategic advantages for firms aligning their technology strategies. Further, this study is truly relevant for practitioners to understand how to adopt and use CAATs in their auditing process and what factors should be considered before implementing CAATS.