An Empirical Investment of the Factors Influencing the Adoption of Computer Based Auditing in Public Limited Liability Companies in Nigeria

Abstract

The previous method of auditing used, known as the manual system of auditing has gone out of date as a result of the technological development. Overtime, the job of an auditor required more accuracy, efficiency, professionalism and quality which were not possible with the use of the manual system of auditing. As a result of the rapid growth and complexity of business organizations in recent times, the traditional method of Auditing is no longer capable of adequately performing its function. This has given rise to the adoption of computer based auditing which is capable of adequately performing the function of an auditor. The adoption of computer based auditing has brought about saving of time in the carrying out of audit assignment. The study focused on factors influencing the adoption of computer based auditing in public limited liability companies in Nigeria. A sample size of 82 was drawn from three selected audit firms in Lagos. The major instrument used for data collection is the questionnaire and the data analysis technique used is the chi-square. The following findings emerged from the study: the adoption of computer based auditing has increased the level of accuracy of the auditor, there is a relationship between easy retrieval of data and the adoption of computer based Auditing; there is a relationship between efficiency and effectiveness of an auditor as the adoption of computer based Auditing has brought about an increase in the desired result of audit assignment. The paper concluded that recent development in technology has left no aspect of the accounting profession untouched and the auditing field is no exception, the impact of computer based auditing on the auditing profession cannot be over emphasized, it has made the job of the auditor easier, faster and even gone further to reduce the risk in the job of the auditor by guaranteeing a greater level of accuracy, it has brought about increase in the efficiency and effectiveness of an auditor and has helped the auditor in meeting deadlines for audit assignments by saving time. Finally, - 233 - the study recommends: that, Audit firms should ensure they have audit software in use for those who have not started using any, in order to enhance the job of the auditor; Adequate training should be given to the auditor regularly on the use of the audit software, audit firms should ensure that they have adequate and current information on current issues such as technological development,

Keywords: Auditing, Computer based auditing, Information technology

International Journal of Development and Management Review (INJODEMAR) Vol. 7 June, 2012