Determinants of effectiveness of computer-assisted audit techniques in the public sector
-
Author(s)Pupung PurnamasariLink to ORCID Index: https://orcid.org/0000-0002-4974-740X
,
Rudy HartantoLink to ORCID Index: https://orcid.org/0000-0002-3485-5838
-
DOIhttp://dx.doi.org/10.21511/ppm.20(4).2022.19
-
Article InfoVolume 20 2022, Issue #4, pp. 250-263
- 633 Views
-
337 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The increasing complexity of transaction processes in every organization, both private and public, has led auditors to develop computer-assisted audit techniques (CAATs). However, potential risks, difficulties, and challenges can hinder the effective implementation of CAATs. The purpose of this study was to examine the factors that influence the effectiveness of the implementation of CAATs in the auditor public sector. The study collected the data by distributing questionnaires to respondents. The sample comprised 225 government auditors in Indonesia, namely the Audit Board of the Republic of Indonesia (BPK). The data were analyzed using the least squares structural equation modeling and importance performance matrix analysis (IPMA). The results show that auditor competence and system quality support the effectiveness of using CAATs. In addition, policies and audit evidence do not affect the effectiveness of CAATs’ use. Other test results using IPMA show that the most critical variable influencing performance is competence in support of increasing the effectiveness of CAATs. These findings indicate that the effectiveness of CAATs use in BPK as a government audit agency requires the support of auditor competence and system quality.
- Keywords
-
JEL Classification (Paper profile tab)C88, M42, H83
-
References62
-
Tables6
-
Figures2
-
- Figure 1. Result of research model
- Figure 2. Importance-performance matrix analysis
-
- Table 1. Variable operation
- Table 2. Descriptive statistics of respondents
- Table 3. Reliability, validity, and multicollinearity tests
- Table 4. Regression results
- Table 5. Importance-performance results
- Table A1. Discriminant validity results
-
- Abou-El-Sood, H., Kotb, A., & Allam, A. (2015). Exploring auditors’ perceptions of the usage and importance of audit information technology. International Journal of Auditing, 19(3), 252-266.
- Ahmad, S., & Afthanorhan, W. M. A. B. W. (2014). The importance-performance matrix analysis in partial least square structural equation modeling (PLS-SEM) with smartpls 2.0 M3. International Journal of Mathematical Research, 3(1), 1-14.
- Al-Hiyari, A., Al Said, N., & Hattab, E. (2019). Factors that influence the use of computer-assisted audit techniques (CAATs) by internal auditors in Jordan. Academy of Accounting and Financial Studies Journal, 23(3), 1-15.
- Amid, A., Moalagh, M., & Ravasan, A. Z. (2012). Identification and classification of ERP critical failure factors in Iranian industries. Information systems, 37(3), 227-237.
- Aslan, L. (2021). The Evolving Competencies of the Public Auditor and the Future of Public Sector Auditing. In S. Grima & E. Boztepe (Eds.), Contemporary Issues in Public Sector Accounting and Auditing (pp. 113-129). Emerald Publishing Limited.
- Awuah, B., Onumah, J. M., & Duho, K. C. T. (2022). Determinants of adoption of computer-assisted audit tools and techniques among internal audit units in Ghana. The Electronic Journal of Information Systems in Developing Countries, 88(2), e12203.
- Banker, R. D., Chang, H., & Kao, Y.-C. (2002). Impact of information technology on public accounting firm productivity. Journal of information systems, 16(2), 209-222.
- Bierstaker, J., Janvrin, D., & Lowe, D. J. (2014). What factors influence auditors’ use of computer-assisted audit techniques? Advances in Accounting, 30(1), 67-74.
- Braun, R. L., & Davis, H. E. (2003). Computer-assisted audit tools and techniques: analysis and perspectives. Managerial Auditing Journal, 18(9), 725-731.
- Chen, Y. (2005). Prepare for e-generation: The fundamental computer skills of accountants in Taiwan. The Journal of American Academy of Business, 7(5), 131-135.
- Conway, E., Monks, K., Buckley, F., Bagram, J., & Barrister, B. (2006). Developing behavioural complexity among global leaders: an international, cross-continental study (The Learning, Innovation and Knowledge Research Centre Working Paper No. 02-06).
- Curtis, M. B., & Payne, E. A. (2014). Modeling voluntary CAAT utilization decisions in auditing. Managerial Auditing Journal, 29(4), 304-326.
- Debreceny, R., Lee, S. L., Neo, W., & Toh, J. S. (2005). Employing generalized audit software in the financial services sector: Challenges and opportunities. Managerial Auditing Journal, 20(6), 605-618.
- DeLone, W. H., & McLean, E. R. (2003). The DeLone and McLean model of information systems success: a ten-year update. Journal of management information systems, 19(4), 9-30.
- DeLone, W. H., & McLean, E. R. (2016). Information systems success measurement. Foundations and Trends® in Information Systems, 2(1), 1-116.
- Dholakia, R. R., & Kshetri, N. (2004). Factors impacting the adoption of the Internet among SMEs. Small Business Economics, 23(4), 311-322.
- Dowling, C. (2009). Appropriate audit support system use: The influence of auditor, audit team, and firm factors. The Accounting Review, 84(3), 771-810.
- Dowling, C., & Leech, S. (2007). Audit support systems and decision aids: Current practice and opportunities for future research. International Journal of Accounting Information Systems, 8(2), 92-116.
- Ebimobowei, A., Ogbonna, G., & Enebraye, Z. P. (2013). Auditors’ usage of computer-assisted audit tools and techniques: Empirical evidence from Nigeria. Research Journal of Applied sciences, Engineering and technology, 6(2), 187-195.
- Eulerich, M., Wagener, M., & Wood, D. A. (2021). Evidence on internal audit effectiveness from transitioning to remote audits because of COVID-19. SSRN Electronic Journal.
- Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 382-388.
- Ghani, R., Ismail, N. A., & Saidin, S. Z. (2016). Adoption of computer-assisted audit tools and techniques (CAATTs): an exploratory study in audit firms. The International Conference on Accounting Studies (ICAS). Langkawi, Kedah, Malaysia.
- Gonzalez, G. C., Sharma, P. N., & Galletta, D. F. (2012). The antecedents of the use of continuous auditing in the internal auditing context. International Journal of Accounting Information Systems, 13(3), 248-262.
- Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling (PLS-SEM). Sage.
- Hair Jr, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European business review, 26(2), 106-121.
- Hamdoun, T., & Hamdan, A. (2008). The Extent of the use of Information Technology in the process of auditing (E-Auditing) in Palestine, and its effect on the quality of the evidence to support the audit opinion of the neutral prepared on the financial statement. Islamic University Periodical-Human Studies, 16(1), 913-958.
- Jacobs, L. (2012). The importance of the quality of electronic records management in enhancing accountability in the South African public service: a case study of a national department. Mousaion, 30(2), 33-51.
- Janvrin, D., Bierstaker, J., & Lowe, D. J. (2008). An examination of audit information technology use and perceived importance. Accounting Horizons, 22(1), 1-21.
- Kong, Y., & Nelson, S. E. (2020). Impact of Effective Information Technology Governance on Audit Technology Performance in Ghana. Research Journal of finance and accounting, 11(24), 39-46.
- Kuan, K. K., & Chau, P. Y. (2001). A perception-based model for EDI adoption in small businesses using a technology–organization–environment framework. Information & management, 38(8), 507-521.
- Lala, S., Gupta, M., & Sharman, R. (2014). Fraud Detection through Routine Use of CAATTs. The 9th Annual Symposium on Information Assurance (Asia’14).
- Mahzan, N., & Lymer, A. (2008). Adoption of computer-assisted audit tools and techniques (CAATTs) by internal auditors: current issues in the UK. The BAA Annual Conference.
- Mahzan, N., & Lymer, A. (2014). Examining the adoption of computer-assisted audit tools and techniques: Cases of generalized audit software use by internal auditors. Managerial Auditing Journal, 29(4), 327-349.
- Mahzan, N., & Veerankutty, F. (2011). IT auditing activities of public sector auditors in Malaysia. African Journal of Business Management, 5(5), 1551-1563.
- Mulaudzi, M., Mukwevho, J., & Ngoepe, M. (2015). Ensuring authenticity and reliability of electronic records to support the audit process. University of South Africa Pretoria.
- Nearon, B. H. (2005). Foundations in auditing and digital evidence. The CPA Journal, 75(1), 32.
- Nelson, R. R., Todd, P. A., & Wixom, B. H. (2005). Antecedents of information and system quality: an empirical examination within the context of data warehousing. Journal of management information systems, 21(4), 199-235.
- Ngoepe, M., & Ngulube, P. (2014). The need for records management in th auditing process in the public sector in South Africa. African Journal of Library, Archives and Information Science, 24(2), 135-150.
- Nunnally, J. C. (1975). Psychometric theory – 25 years ago and now. Educational Researcher, 4(10), 7-21.
- O’brien, R. M. (2007). A caution regarding rules of thumb for variance inflation factors. Quality & quantity, 41(5), 673-690.
- Omitogun, A., & Al-Adeem, K. (2019). Auditors’ perceptions of and competencies in big data and data analytics: an empirical investigation. International Journal of Computer Auditing, 1(1), 92-113.
- Omonuk, J., & Oni, A. (2015). Computer-assisted audit techniques and audit quality in developing countries: Evidence from Nigeria. The Journal of Internet Banking and Commerce, 20(3).
- Owusu, G. M. Y., Bekoe, R. A., Koomson, T. A. A., & Simpson, S. N. Y. (2019). Temptation and the propensity to engage in unethical behaviour. International Journal of Ethics and Systems, 35(1), 43-58.
- Owino, B., & Musuva, P. (2021). Empirical Assessment of Improved Audit Quality Factors Using Computer-Assisted Audit Tools and Techniques (Caatts). Journal of Language, Technology & Entrepreneurship in Africa, 12(2), 147-171.
- Purnamasari, P., Amran, N. A., & Hartanto, R. (2022). Modelling computer assisted audit techniques (CAATs) in enhancing the Indonesian public sector [version 1; peer review: 1 approved, 1 approved with reservations]. F1000Research, 11, 559.
- Rafi, F. (2019). Audit procedure in Bangladesh: an experience at ACNABIN chartered accountants. United International University.
- Sayana, S. A., & Cisa, C. (2003). Using CAATs to support IS audit. Information Systems Control Journal, 1, 21-23.
- Saygili, A. T. (2010). Taking advantage of computer-assisted audit tools and techniques during testing phase in financial audits: An empirical study in a food processing company in Turkey. Global Journal of Management and Business Research, 10(2), 113-119.
- Seddon, P. B. (1997). A respecification and extension of the DeLone and McLean model of IS success. Information systems research, 8(3), 215-317.
- Subramanian, G. H., Jiang, J. J., & Klein, G. (2007). Software quality and IS project performance improvements from software development process maturity and IS implementation strategies. Journal of Systems and Software, 80(4), 616-627.
- Supriadi, T., Mulyani, S., Soepardi, E. M., & Farida, I. (2019). Influence of Auditor Competency in Using Information Technology on the Success of E-Audit System Implementation. EURASIA Journal of Mathematics, Science and Technology Education, 15(10).
- Thottoli, M. M., & Thomas, K. (2022). Characteristics of information communication technology and audit practices: evidence from India. VINE Journal of Information and Knowledge Management Systems, 52(4), 570-593.
- Tripathi, K., & Agrawal, M. (2014). Competency-based management in organizational. Global Journal of Finance and Management, 6(4), 349-356.
- Veerankutty, F., Ramayah, T., & Ali, N. A. (2018). Information technology governance on audit technology performance among Malaysian public sector auditors. Social Sciences, 7(8), 124.
- Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425-478.
- Widuri, R., O’Connell, B., & Yapa, P. W. (2016). Adopting generalized audit software: an Indonesian perspective. Managerial Auditing Journal, 31(8/9), 821-847.
- Widuri, R., Sari, N., Wicaksono, A., Sun, Y., & Sari, S. A. (2017). Perception of internal auditor on the use of Generalized Audit Software. The 2017 International Conference on Research and Innovation in Information Systems (ICRIIS). Langkawi.
- Wixom, B. H., & Todd, P. A. (2005). A theoretical integration of user satisfaction and technology acceptance. Information systems research, 16(1), 85-102.
- Wyród-Wróbel, J., & Biesok, G. (2017). Decision making on various approaches to Importance-Performance Analysis (IPA). European Journal of Business Science and Technology, 3(2), 123-131.
- Yan, L. (2015). Computer Assisted Auditing Techniques for Financial Audit Effectiveness and Efficiency. Journal of Next-generation Convergence Information Services Technology, 4(2), 95-104.
- Zhao, N., Yen, D. C., & Chang, I. C. (2004). Auditing in the e-commerce era. Information Management & Computer Security, 12(5), 389-400.
- Zulu, P., Ngoepe, M., & Saurombe, N. (2017). The importance of legislation in the provision of national and public library services in Zambia. Journal of Librarianship and Information Science, 49(2), 152-164.
-
Public finances, governance control and economic growth: a macroeconomic history approach
Ola Honningdal Grytten 
doi: http://dx.doi.org/10.21511/imfi.16(1).2019.15
Investment Management and Financial Innovations Volume 16, 2019 Issue #1 pp. 189-202 Views: 2580 Downloads: 510 TO CITE АНОТАЦІЯThe size of the public sector is an important tool in public governance. Public sector size may fuel both economic growth and political influence over the economy.
By compiling and processing data from different sources of public accounts the paper aims at mapping the development of key financial indicators for the Norwegian central government sector during the transition period from the mid 19th to the mid 20th century. The data enable us to give measures of the size of the public sector alone and compared to the overall economy.
It is found that the sector started its continuous growth before politicians deliberately started to increase the sector’s size of the total economy. The paper also finds that an increase of the public sector often, but not always, reflects political economy regimes. Persistent growth in public finances as a tool for economic policy making did not take place before the introduction of the social-democratic regime in 1935.
The paper also concludes that economic growth started before the growth in the public sector, suggesting that public sector growth might as well be a result of economic growth or vice versa. -
The development of talent management in Malaysian public sector: a comprehensive review
Sharmaine Sakthi Ananthan ,
Halimah Abdul Manaf ,
Mega Hidayati ,
Dian Suluh Kusuma Dewi
doi: http://dx.doi.org/10.21511/ppm.17(2).2019.18
Problems and Perspectives in Management Volume 17, 2019 Issue #2 pp. 242-253 Views: 2270 Downloads: 1138 TO CITE АНОТАЦІЯThe aim of this current study was to analyze recent development of talent management among public service managers in Malaysia. The study brings understanding on talent management and broader human capital issues within Malaysia context by analysing the comprehensive literature. Government of Malaysia is emphasizing on development of talent in the public sector, as it is the most significant resource for the public service. The study found that the government has invested in various programs and initiatives to develop and produce key talented human capital within the public sector. However, despite the initiatives taken by the government, Malaysia is still short of talented people and struggling to develop talent, and talented skilful people are leaving. The study also indicated that year after year increasing number of graduates are being produced at the public universities, but the education system is not producing the right skilful individuals for the particular position or task, resulting in talent mismatch. Another key issue is the incapability to retain talented people that led to poor innovation and creativity within the country. Is key issue is part of the factors discussed in the 10th and 11th Malaysia Plan, and is a concern, as it plays a role in preventing the progress of Malaysia in achieving a developed nation by 2020. As one of the key aspirations of Malaysia is to enrich public service in Malaysia as a citizen centre that is having talented human capital. The study revealed that there is a need for in-depth quantitative and qualitative further research to discover new insights on talent management and retain talent among the public sector managers in Malaysia.
-
Factors affecting accrual accounting reform and transparency of performance in the public sector in Vietnam
Phuong-Nguyen Thi Thanh ,
Hai Phan Thanh ,
Tung-Nguyen Thanh ,
Tien-Vo Thi Thuy
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.16
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 180-193 Views: 1637 Downloads: 549 TO CITE АНОТАЦІЯThis study was conducted to determine the factors and their influence on accrual accounting reform in the public sector in Vietnam. Combining qualitative and quantitative research methods based on empirical surveys of 268 accountants, controllers, and auditors working in state agencies such as the Department of Finance, state treasuries and agencies receiving revenues from the state budget in 2019. This study shows that six factors influence the reform of the accounting system in the public sector in Vietnam to accrual-based: accounting staff – especially their expertise, competence, and work experience; training and support of the consulting experts; costs of the accounting reform; level of information technology application; funding and assistance from international organizations; legal environment.
At the same time, the accrual-based accounting reform will have a positive impact on improving the transparency and efficiency of public sector operations in Vietnam. Among the factors affecting accounting reform, the legal environment factor is the most influential determinant, followed by the contingent of accountants. The study’s limitation is that the new experimental investigation is only conducted with a small sample size and in a short period. However, the research results are also a useful reference for those who are interested in the context that Vietnam is preparing to have strong reforms in accounting in the public sector in the coming time.
