Hype or Hope: Digital Technologies in Auditing Process

Abstract

Manuscript type: Research paper Research aims: This study aims to examine how technological,organisational and environmental (TOE) factors affect digital technologies’ utilisation and its impact on auditors’ performance. Design/Methodology/Approach: A survey was conducted on 4 large and non-large companies in Jordan, and data were retrieved from 168 external auditors. The partial least squares (PLS-3) structural equations modeling was used to analyse data and to test the proposed model. Research findings: Results show that the TOE factors have a significant and positive effect on digital technologies utilisation. It also appears to enhance auditors’ performance. Theoretical contribution/Originality: This study fills a gap in the literature of accounting by empirically assessing how digital technologies utilisation impacts the performance of auditors in Jordan. It also expands on previous literature by determining how the TOE factors affect such technology usage in the auditing process. This study also has a methodological contribution in the form of measuring the client’s complexity of IT system from a different perspective, which is from the external auditor’s perspective. Practitioner/Policy implications: This study is expected to help regulators and audit companies to update their policies and regulations so that auditors are trained in using advanced technologies, and in protecting the security of accounting information. In this regard, efficient auditors will be able to protect investors, thereby creating an attractive environment for investment which can boost economic growth. Research limitation/Implications: This study is based on the Jordanian context. There was no comparison made with developing or developed countries, hence no distinctions can be detected. Future studies should focus on looking at other countries so as to provide new insights into the auditing profession, and specifically, auditors’ performance. Finally, this study is a practical guide for external and internal auditors who have not considered digital technologies, in the context of Jordan. Future studies may thus consider internal auditors and their relationship with external auditors in digital technologies utilisation.

Artificial intelligence and the future of the internal audit function

“…Second, most of the studies on the topic were conducted in developed countries and regions, indicating the shortage of research in other contexts. This phenomenon confirms the study of Allbabidi (2021), who stated that most of the studies on adopting and using AI for auditing are undertaken in developed countries. Thus, studies must further investigate the topic in developing countries and regions (e.g.…”

“…Considering the locations in previous publications, this review found that no study was undertaken considering two country cases (comparative analysis). Moreover, it was found that most studies undertaken on the topic are based in developed countries, confirming Allbabidi's (2021) study. In those circumstances, future researchers can contribute by undertaking comparative analysis and covering different locations, especially developing regions (like Africa) and countries.…”

The Relationship between the Frequency of Technology Use and Electronic Commerce Adoption among Small and Medium-Sized Enterprises in Kuwait

“…The TOE framework and Diffusion of Innovation (DOI) theory have been widely used as frameworks in studying e-commerce adoption in different countries and have found consistent empirical support (Allbabidi, 2021;Huy et al, 2012;Ilin et al, 2017;). Specifically, these theories have been used in prior empirical research due to their popularity in literature and they have been found to provide a broad understanding of the adoption of new technology such as e-commerce (Qashou & Saleh, 2018;Khoo et al, 2018).…”

Factors associated with the intention to use information technology in audit in Iraq

“…As auditors, they should be capable of carrying out a number of tasks competently, as well as the fundamental skills and knowledge required to complete each task (Komneni c, 2009). In the context of technology, highly competent persons tend to be more confident in the use of technology tools; they enjoy using them and appreciate their usefulness (Allbabidi, 2021;Al-Hattami, 2023). IT audit competency plays a crucial role in ensuring the effectiveness and efficiency of IT systems within organizations.…”