IT Governance and Perceived Usefulness of CAATs: An Empirical Study

Abstract

Industry 4.0 has been taking place rapidly and profoundly affecting all areas of social life, especially significantly changing how organizations operate. IT tends to be increasingly implemented in organizations and is receiving large investments. Auditing practice does not go beyond this phenomenon. Computer-assisted audit techniques (CAATs) have become important for performing audit tasks. However, there is a lack of research on CAATs in emerging markets. This study investigates the impact of IT governance (ITG) on CAATs’ perceived usefulness, based on the integration of technology acceptance models and agency theory. We also examine the impact of CAAT type on CAATs’ perceived usefulness of internal and external auditors. PLS analysis shows that ITG mechanisms, including IT support, IT strategy, and IT committee, correlate more strongly with CAATs’ perceived usefulness than top management support. CAATs’ perceived ease of use plays a significant role in perceived usefulness. CAATs’ perceived usefulness is heterogeneous among the three software groups: spreadsheets, experts, and in-house software. This study provides initial empirical support and confirms the relationship between the types of CAATs and CAATs’ perceived usefulness. The findings also suggest that IT support, IT strategy, IT committee, and CAATs’ perceived ease of use may make it easier to adopt CAATs.