Adoption of Audit Technology in Audit Firms

This paper investigates audit technology adoption based on Technology-Organization-Environment (TOE) framework, Diffusion of Innovation and Institutional theories. As more audit firm’s clients use enterprise information systems, it is important for audit firms to adopt audit technologies in auditing. Descriptive statistics results from questionnaire survey on 38 audit firms’ auditors reveal that more than 50% of auditors had never used computer-assisted-audit tools other than electronic spreadsheets. Despite the low adoption, the respondents agreed that audit technology is cost-effective. Low mean ratings were given on other indicators of audit technology adoption i.e. technology compatibility, technology complexity, organization readiness, top management support, employee’s competency, client’s system complexity, competitive pressure, vendors’ and professional accounting bodies’ supports. Results also show that firm size influenced the adoption level. Theoretically, this paper contributes in developing a comprehensive audit technology adoption framework by incorporating client’s system complexity and professional accounting body support that enhances the original TOE framework

Computer-Assisted Auditing Tools Acceptance Using I-Toe: A New Paradigm

This paper presents a new adoption framework i.e. Individual, Technology, Organization and Environment (I-TOE) to address the factors influencing computer-assisted auditing tools (CAATs) acceptance in public audit firms. CAATs are audit technology that helps in achieving effective and efficient audit work. While CAATs adoption varies among audit departments, prior studies focused narrowly on CAATs acceptance issues from the individual perspective and no comprehensive study has been done that focused on both organization and individual standpoints. Realizing this gap, this paper aims to predict CAATs adoption factors using the I-TOE framework. I-TOE stresses on the relationship of Individuals factors (i.e. performance expectancy, effort expectancy, social influence, facilitating condition, hedonic motivation and habit), CAATs Technology (i.e. technology cost-benefit, risk and technology fit), Organization characteristics (i.e. size, readiness and top management), and Environment factors (i.e. client’s AIS complexity, competitive pressure and professional accounting body regulations) towards CAATs acceptance. It integrates both Unified Theory of Acceptance and Use of Technology 2 and Technology-Organization-Environment framework. I-TOE provides a comprehensive model that helps audit firms and regulatory bodies to develop strategies and policies to increase CAATs adoption. Empirical study through questionnaire survey will be conducted to validate I-TOE model

Revenue information system development: A case of direct selling company

This study is to determine the resources, events, and agents for Resource-Event-Agent (REA) data model as a technique of specifying and designing accounting information system and also to develop a system prototype based on the REA model.The Revenue Information System (RIS) REA model and prototype are developed by having direct selling Sales Point as the case study. REA data model is chosen to ease the understanding of the database, particularly to those who do not possess information technology background.The idea is to build an information technology application that supports business process in real-time.In this paper, we described a structured approach and process in planning and performing a transformation project and in the conversion from the legacy information systems to the new updated information systems.We have applied the REA model approach and process to a real world case study, that is, the transformation project of the RIS in the sales order receipts and cash receipt systems.RIS is developed using MS Access 2003 as the database and Visual Basic for the interface.The result shows that REA model captures only essential aspects of economic phenomena and thus, (1) models are kept concise and easy to understand, (2) models can be used for many applications, and (3) derived artifacts are always consistent by means of the models.The new developed prototype system has resulted in improving the efficiency in business processes, supporting timely collection of cash, providing timely account information for decision making and also increasing customer satisfaction by improving the quality, speed and responsiveness of their customer services.User-friendly functions and Graphical User Interface (GUI) features that were embedded in the system also contributed to the feasibility success and adoption of the system prototype. Database design in business information system structured by accountants and those who are involved in the business itself would create a meaningful system as their business needs are fulfilled

Resource-Event-Agent (REA) modelling in Revenue Information System (RiS) development: Smart application for direct-selling dealers and SMEs

Revenue Information System (RiS) is the product of a research project based on a case study on direct-selling sales point.This study is to determine the resources, events, and agents for Resource-Event-Agent (REA) data model as a technique of specifying and designing accounting information system and also to develop a system prototype based on the REA model.RiS is built based on the REA data model since it captures only essential aspects of economic phenomena.The idea is to build an information system application that supports business process in real-time and the REA data model is chosen to ease the understanding of the database.In this paper, the researchers described the approach and process in planning and performing the project transformation and conversion from the legacy information systems to the new updated information system.The researchers applied the REA model approach and process into a real case study of sales order and cash receipt systems.The result shows that REA model captures only essential aspects of economic phenomena and thus, (1) models are kept concise and easy to understand, (2) models can be used for many applications, and (3) derived artefacts are always consistent by means of the models. This new developed system has resulted in the improvement in business processes efficiency, the timely collection of cash and the provision of timely account information for decision making. Database design in business information system structured by accountants and those who are involved in the business itself will create a meaningful system as their business needs are fulfilled

Awareness and adoption of university smart card: The case of UUM

Smart cards are widely used for several applications. Education environments offer the best opportunities for the adoption of smart cards technology.Therefore, this study is interested to assess the awareness and adoption towards the current and future of smart card applications in university.The study focused on Universiti Utara Malaysia (UUM) since UUM was the pioneer adopter and implementer of smart card among universities in Malaysia.This study was conducted to identify the awareness and adoption of the current applications of university smart cards. Additionally, this study distinguished respondents’ preferences for future applications of university smart cards in order to optimize the adoption process.Data were gathered through questionnaires that have been distributed to the UUM staffs.All the collected data were analyzed using descriptive analysis.Results have shown that most of the respondents were aware of the smart card applications and identified which application that is the most aware of. The results have shown that respondents were aware and adopt similar applications.Nevertheless, even though the respondents were aware of the smart card applications, they do not fully adopt and use them.This study has also identified what applications that respondents prefer to be enhanced and continued in the future smart card

Adoption of audit technology in audit firms

This paper investigates audit technology adoption based on Technology-Organization-Environment (TOE) framework, Diffusion of Innovation and Institutional theories.As more audit firm’s clients use enterprise information systems, it is important for audit firms to adopt audit technologies in auditing.Descriptive statistics results from questionnaire survey on 38 audit firms’ auditors reveal that more than 50% of auditors had never used computer-assisted-audit tools other than electronic spreadsheets.Despite the low adoption, the respondents agreed that audit technology is cost-effective.Low mean ratings were given on other indicators of audit technology adoption i.e. technology compatibility, technology complexity, organization readiness, top management support, employee’s competency, client’s system complexity, competitive pressure, vendors’ and professional accounting bodies’ supports. Results also show that firm size influenced the adoption level.Theoretically, this paper contributes in developing a comprehensive audit technology adoption framework by incorporating client’s system complexity and professional accounting body support that enhances the original TOE framewor

Application of Computer-Assisted Audit Tools and Techniques (CAATTs) in audit firms

This paper explores the application of Computer-Assisted Audit Tool and Techniques (CAATTs) and the reasons for the use of CAATTs application among audit firms in Malaysia. The study uses survey and interview methods to explore the types of CAATTs applied by the respondent firms. The results demonstrate that the application of CAATTs among audit firms varies by firm size. The application of advanced CAATTs, i.e. Embedded Audit Modules, Parallel Simulation Software, Test Data were the highest in Big-4 firms, as compared to medium and small sized firms. The reasons that influence them to practice the use of CAATTs are availability of financial resources, partners’ expertise and their clients’ nature of operation. The application of CAATTs is not compulsory by the law or standards. However, there is an encouragement from the authorities and accounting bodies for the practitioners to apply CAATTs in their audit works. The findings contribute in providing inputs to the policy makers and practitioners on how to enhance the application of CAATTs into the current practice of auditing process and future regulations. The present study also opens up opportunities and provides avenues for more indepth research on the subject of CAATTs

Investigating the technological, organisational and environmental influences on the adoption of computer-assisted audit tools and techniques among audit firms in Malaysia

In today’s advancement of technology, many businesses use e-business and computerised accounting information systems (AIS) to process business transactions. Particularly in Malaysia, with the implementation of the Goods and Services Tax (GST), businesses need to utilise GST-compliant systems. This phenomenon has challenged public practice audit firms in assessing the businesses’ financial statements because most transaction evidence is electronically processed and stored. Audit firms need to employ Computer-Assisted Auditing Tools and Techniques (CAATTs) to enhance the efficiency and effectiveness of their audit work, and keep abreast with their client AIS. Nevertheless, although auditors acknowledge the benefit of CAATTs, its adoption is low among audit firms. The issues of CAATTs adoption from the organisational standpoint in discovering the reasons influencing audit firms to adopt CAATTs have yet to be studied. Therefore, this study aims to investigate the main factors and mediating factors in predicting CAATTs adoption. The framework of this study stresses on the relationships of technological factors (relative advantage, compatibility, complexity, trialability and observability), organisational factors (top management commitment, employees’ IT competency and firm size), and environmental factors (client’s AIS complexity, competitive pressure and professional body support) on CAATTs adoption. It is argued that the adoption of CAATTs in audit firms is influenced not only by technological characteristics, but also the organisational and environmental factors involving these firms. CAATTs adoption by audit firms is worth studying due to the unique environmental context i.e. the nature of their services in performing audits for clients and the fact that they are regulated by professional bodies. Hence, the original contribution of this study is to extend the literature by providing a better framework in understanding the technological, organisational and environmental factors in predicting CAATTs adoption. Theoretically, this study complements the underlying Diffusion of Innovation Theory, Technology-Organisation-Environment framework, and Institutional Theory with two new factors namely professional body support and client’s AIS complexity. It is hypothesised that these two factors would positively affect CAATTs adoption. This study also contributes to supplement the existing framework with mediating effects of firm size, IT competency and top management commitment in explaining CAATTs adoption. It is anticipated that (1) firm size would mediate the relationship between client’s AIS complexity and CAATTs adoption, (2) employees’ IT competency would mediate professional body’s direct effect on CAATTs adoption, and (3) top management commitment would mediate professional body’s direct influence on CAATTs adoption. Practically, this study contributes towards helping audit firms and regulatory bodies to develop strategies and recommendations to increase CAATTs adoption. Survey questionnaire responses from 158 audit firms were analysed using the Partial Least Squares Structural Equation Modelling. The results revealed that firm size, client’s AIS complexity, professional body support, employees’ IT competency, top management commitment, compatibility, observability, trialability and relative advantage significantly influence CAATTs adoption. It was also found that firm size partially mediates the relationship between client’s AIS complexity and CAATTs adoption. Test on employees’ IT competency as a mediator further found a significant indirect effect between professional body support and CAATTs adoption via employees’ IT competency. This demonstrates that the support of professional body plays an important role in increasing IT competency among audit firm employees, thereby promoting CAATTs adoption. In conclusion, this study suggests that the decision on CAATTs adoption is not merely dependent on CAATTs technological factors, but also contextual factors of organisational and external environmental issues in the auditing profession, such as the influence of client’s AIS complexity and involvement of professional body are indeed important in addressing the adoption of CAATTs

Improving Students' Knowledge of The System Development Life Cycle's (SDLC) Implementation Phase Using Gamification (S/O 14515)

This paper aimed at investigating the use of game-based learning approach in creating meaningful learning experiences and its influence in improving students' knowledge on the subject matter. A total number of 120 students enrolled in the accounting system analysis and design course in a university participated in this experimental study. Grounded by Kolb's experiential learning theory, an experiment was conducted to explore how participants involve themselves in learning from experience by playing educational game. Data were collected through pre and post quiz scores, questionnaire surveys, interviews, and reflections on the students' feedback. The results of the t-test analysis showed that students achieved higher marks after the game intervention and the difference in the mean score between before and after the game played is statistically significant. The findings suggested that the game-based learning approach in teaching and learning can assist students in understanding the subject better than the teacher-centred approach. The results of the study also found that the learning sessions were more engaging and fun as the respondents enjoyed learning through playing games. In addition, the game-based learning approach motivates them to conduct self-study while seeking answers to solve the game tasks. Practically, this study contributes to disseminate awareness among academicians and industry practitioners in developing more educational games that can be used in teaching and learning. Theoretically, it contributes to the existing literature of game-based teaching approach

The ICT competencies of new accounting students of different intake channels: The case of the Universiti Utara Malaysia

This study aims to investigate the level of information and communication technology (ICT) competency possesses by new accounting students at the Universiti Utara Malaysia according to their intake channels.The study examines five software applications deemed critical for an accountant, namely, word processing; spreadsheet; database; PowerPoint presentation; and Internet and email.A survey was conducted on 182 first year accounting students. Overall, students from the diploma intake channel are found to possess the ICT competency better than those from other intake channels. The competency of students from Matriculation and STPM intake channels in spreadsheet is found to be below average.All students regardless of their intake channels were found to be less competent in database application