The impact of remote auditing on audit quality: the moderating role of technology readiness

Abstract

Purpose This study aims to investigate the impact of remote auditing on audit quality and explore the moderating role of both the client’s and the audit firm’s technology readiness in this interaction. Design/methodology/approach Data was collected through a questionnaire survey distributed to 360 audit professionals in Jordan, resulting in 208 valid responses. The data was analysed using SmartPLS – structural equation modelling. Findings The results showed that remote auditing significantly and positively affect audit quality. This study found that the technology readiness of both the audit firm and the client greatly influences audit quality. Notably, the technology readiness of the client positively enhances the relationship between remote auditing and audit quality, while the technology readiness of the audit firm does not play such a role. Practical implications The findings are of value to policymakers in terms of the positive impact of remote auditing on audit quality, and the role of technology readiness in this regard. In particular, they allow policymakers and regulators of audit profession to make informed and relevant decisions pertaining to the adoption of remote auditing. The findings also indicate the significance for audit firms and business institutions to pay special attention to developing their technology capabilities to keep abreast of rapid technology advancements, ensuring the maximum benefits for auditing profession, thereby enhancing their efficiency and effectiveness. Originality/value The importance of this study lies in its unique contribution to bridging the research gap related to understanding the pivotal role of technology readiness in enhancing the relationship between the use of remote auditing and the achievement of high audit quality.