Determinants for Effective Application of Software in Computer Assisted Auditing Techniques (CAATs)

Abstract: The purposes of this study are to get an over all picture of the general objectives and awareness of auditors for the adoption of CAATs and the current level of involvement of auditors in the application of CAATs in the audit process, which software and techniques they use and the possible causes for non use or less efficient use of CAATs. Once the determinant factors are identified, their implications for audit firms and to employees in the auditing profession are also discussed. The auditing profession certainly has firm integration with IT and it seems that firms under this survey and their employees aware of this and are trying to integrate relevant computer assisted auditing techniques (CAATs) in the audit process. The survey result indicated that both management and employees believe that, effective applications of CAATs in the audit process have high potential for enhancing work efficiency and effectiveness. Besides, audit firms seem less constrained by the major hurdles for effective adoption of IT in their operational process.However, the pace of change by audit firms in adopting the relevant CAATs for auditing and be abreast of technology seem slow due to lack of awareness and less commitment to address change and develop appropriate strategies and plans in order to adapt the operation of the firm in line with the change in technology, business operation environment and the increasing public demand and expectation for timely audited financial information. Employees seem lacking adequate knowledge and relevant practical experience to utilize the full potentials of the existing CAATs. Technical complexities of the software and less involvement of users while new technology is adopted are also found to be other determinant factors.The findings of this research have some practical implications for future auditors. It is inevitable that the application of CAATs for auditing will be even more relevant in the future than now as business increasingly use electronic data processing techniques to process their accounting systems which in turn signal the end of traditional auditing approach. Effective application of CAATs in such computerized accounting information system will help auditors to perform quality audit timely that can meet public demand and expectation. For this auditors need to keep abreast with current issues and looks at available CAATs tools and improve their conceptual abilities in defining the techniques and enhancing their imaginative skill to implement CAATs.