Adopting generalized audit software: an Indonesian perspective

Abstract

Purpose This paper aims to identify key factors driving auditors’ adoption of Generalized Audit Software (GAS) in a large developing country, Indonesia, through the lens of the technology, organization and environment (TOE) framework. Design/methodology/approach Results of this study are based on semi-structured in-depth interviews conducted in Indonesia with audit firms of varying sizes. Findings Key study findings included the identification of highly influential adoption factors, especially environmental factors, such as availability of information technology-skilled auditors in the local market, client needs and expectations and client size. This study has also identified factors, not identified in previous research, as being influential including the importance of GAS availability in a range of languages and the necessity of a supportive professional and regulatory environment. Originality/value This study makes several contributions to the literature including that it identifies new influential factors in the TOE framework. This framework has not been widely applied in auditing research and looks beyond the individual perspective to that of the organization as a whole. Moreover, the present study takes a developing country perspective and examines a range of audit firms. In contrast, most studies to date in the area have taken a Western focus and have concentrated on large audit firms. Additionally, this study provides an in-depth analysis through the use of semi-structured interviews, whereas prior studies have relied on surveys.

Future of Audit with Pro-Auditor With Data Analytics

“…This has been supported by [1], who claimed that even with the existence of some audit software today, the productivity of work by auditors remains quite low. Therefore, a productivity monitoring system will be able to track the audit work to determine the quality of audit reports produced.…”

“…Incompetency of the current audit practice have caused many issues within the auditing world. According to [1], there are certain audit practices that should be embraced by auditors to support their tasks in retrieving information and analyzing data and the best platform to do so would be through (CAATTs) which stands for Computer Assisting Audit Tools and Techniques.…”

“…Through a constructed IT-assisting audit system, several components of audit shall be addressed and monitored, such as data analytical procedures, system functions and rate of final execution. Moreover, as agreed upon by [1], auditors need a centralized and systematic system to ensure that they could perform crucial tasks such as testing program controls. By having an integrated system like the Pro-Auditor Software, organizations in Malaysia can achieve their objective of reaching the levels of auditing procedures in more developed countries.…”

“…According to [1], all the big four firms rely on a developed platform and software to carry out several key functions that are required for audit purposes. Examples of those functions are evaluating risks, testing journal entries, and selecting transactions based on control risk samples.…”

Implikasi Likuiditas Perusahaan Bagi Opinion Shopping

“…Hal tersebut membuat KAP lebih berhatihati dalam melakukan tu gasnya sehingga auditor akan lebih patuh terhadap peraturan OJK untuk mengaudit suatu perusahaan maksimal selama lima ta hun. Hal ini pulalah yang diyakini oleh se jumlah peneliti bahwa diperlukan standar audit yang relevan de ngan keputusan opini audit secara keseluruh an mengatur tentang opini yang diberikan KAP, apabila terdapat peristiwa yang menimbulkan keraguan au ditor atas kelangsungan usaha perusahaan (Habib & Muhammadi, 2018;Ika & Ghaza li, 2012;Rusmin & Evans, 2017;Widuri, O'Connell, & Yapa, 2016). Regulasi seperti Sarbanes-Oxley Act (Asthana & Boone, 2012;Chen, Krishnan, & Yu, 2018;Chu & Hsu, 2018;Johnson, Reichelt, & Soileau, 2018;Ng, Tronnes, & Wong, 2018) perlu dibuat untuk meredam praktik opinion shopping di Indonesia.…”