Technology readiness and data analytics competencies of the Muslim and non-Muslim external auditors: a comparative analysis

Abstract

Purpose The purpose of this study was to investigate the level of technology readiness (TR) of the Muslim and non-Muslim external auditors and its effect on their data analytics competencies (DACs). Literature is insufficient in addressing the comparative analysis of these constructs among these auditing professionals. Design/methodology/approach A survey was conducted on 201 external auditors. Questionnaire was developed based on TR and DAC literature. Pilot testing was conducted on 50 respondents, who were drawn from the sample. Findings Non-Muslim external auditors were found to be more technology ready than Muslim external auditors. The optimum dimension of TR was significantly different between Muslim and non-Muslim external auditors. Significant mean difference was found only for personal capabilities dimension of DAC between Muslim and non-Muslim external auditors. TR had a significant effect on Muslim external auditors’ personal capabilities dimension of DAC; however, there was insignificant effect on all DAC dimensions for non-Muslim external auditors. The highest DAC score of the external auditors were only at the beginner level for technical skills and technologies and tools expertise dimensions. Research limitations/implications Using students as proxies for external auditors could lead to concerns with generalisability. Nonetheless, these students were competent to act as proxies as they had completed a six-month internship at an accounting firm. Practical implications The findings manifested the need for Muslim external auditors to be more technology ready. External auditors need to enhance their DAC to meet digital economic needs. Originality/value This study advocated the importance for auditing professionals to acknowledge the new data analytics challenges.