enhances employee satisfaction, contributing to overall operational success (Ma, Lee, Teoh, & Ling, 2021).The advent of Industry Revolution 4.0 (IR 4.0) has accelerated the automation and IT innovation, whereby cloud technology has emerged as a significant innovation. Cloud Accounting Information Systems (CAIS) have become critical tools for businesses, offering on-demand information accessibility via the internet (Gunanta, Hadian, Marwata, & Saudi, 2020). The adoption of CAIS is driven by several factors such as the benefits it brings to businesses, technological demand, regulatory requirements, and the influence of the younger generation (MIA, 2019). The use of CAIS in the accounting sector plays a crucial role in minimising data breaches and fraud, as well as enhancing audit quality and compliance (Thuan et al., 2022).The accounting sector's transformation, driven by the use of automation and digital tools, has reshaped the roles of accountants and revenue streams for small enterprises. The adoption of software and subscription services has resulted in the optimisation of data collection, organisation, and tasks like bank reconciliation, hence impacting the efficiency of both large and small firms (AOB, 2021). The audit industry in Malaysia has witnessed notable changes, which are marked by a decrease in the number of audit firms and a simultaneous increase in the registration of individual auditors. The COVID-19 epidemic has accelerated the adoption of flexible work arrangements (FWAs), with 90% of Malaysian employees favouring location and schedule flexibility (Ernst & Young LLP, 2021). This transition motivates a need for a more in-depth examination of the employee's perspectives on adoption of CAIS. However, challenges associated with CAIS adoption, including the lack of government support and concerns about cyber-security, posing a need for further exploration (Awa & Ojiabo, 2016;Marston, Li, Bandyopadhyay, Zhang, & Ghalsasi, 2011).This study extends the DOI-TOE model to include situational constraints such as required skills, resources, and the organisational learning climate, as well as the flexibility of working arrangements (Yoon, Ghosh, & Jeong, 2014;Pitt-Catsouphes & Matz-Costa, 2008). The research aims to bridge gaps in the literature regarding CAIS adoption in Sarawak and address inconsistencies in previous findings. By investigating factors influencing CAIS adoption in Sarawak's audit firms, the study seeks to provide valuable insights into the challenges and opportunities presented by CAIS adoption within the extended DOI-TOE framework. The overarching goal of this research is to comprehensively examine the factors influencing CAIS adoption rates among audit firms in Sarawak, shedding light on the complexity of this adoption process in a rapidly changing technological landscape.
Literature Review Adoption Models Diffusion of Innovations (DOI)Rogers (1962) developed the theory of diffusion of innovations (hereafter DOI), a framework widely employed in studying IT adoption at both individual and o...