Effects of Computer Assisted Audit Techniques on Quality of Internal Audit Reports in Kenya

Abstract

This study explores how Computer-Assisted Audit Techniques (CAATs) affect the quality of internal audit reports in Kenyan businesses. Modern auditing now relies heavily on CAATs as a key instrument for efficiency improvement, comprehensive data collection, and confidentiality protection. This study investigates the use of technology in the audit process, emphasizing its potential to boost productivity, gather significant amounts of data, speed up the decision-making process, and protect data privacy. The theoretical framework draws from two main theories: Performance Expectancy Theory and Contingency Theory. The research reviews existing empirical studies to underscore CAATs' positive and negative influences on internal audit reports. It highlights the need for proper training and support to harness CAATs' potential effectively. Challenges, including the lack of resources, conflicts of interest, and difficulties in implementation, are identified. The study concludes that while CAATs offer numerous advantages in auditing, their successful integration requires a balance between technology, training, and human expertise. As the audit profession continues to evolve, understanding the implications of CAATs on internal audit reports is crucial for ensuring the integrity and quality of financial information in all sectors.