The effect of adoption of computerized auditing on audit quality in Kenya
Abstract
The role of the computer has expanded greatly in many types of businesses and
throughout many areas of those businesses. Audit firms have begun to integrate the
computer into many more areas than just the standard use of word processing for
generating letters and reports. Auditing as a profession has also been under a lot
pressure to produce quality work, due to recent collapse of multinational corporations.
There has been many researches done on audit quality, but none has handled the
effects of computerized auditing on audit quality in Kenya. This study was undertaken
to determine the extent of adoption of computerized auditing in Kenya and the effects
of adoption of computerized auditing on Audit quality in Kenya.
The study adopted descriptive survey research design. The target population was
made up of 712 audit firms obtained from the Institute of Certified Public
Accountants of Kenya ICPA (K). A sample was selected randomly to avoid bias. The
study used primary data which was collected using questionnaires. A regression
analysis was applied to the parameters to determine the effect of adoption of
computerized auditing on audit quality.
The findings from this study indicated that 26 firms out of the 105 respondents had
adopted computerized auditing, and this can be regarded as relatively high. The study
found that the challenges inhibiting the adoption of computerized auditing in Kenya
were lack of proper computer trainings, lack of technical support, and the high cost of
acquisition and maintenance of computer audit software and computer hardware. The
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findings of the study indicated a positive relationship between adoption of
computerised auditing and audit quality.
The study recommends that, managers should set aside resources for training and
acquisition of computers and software for computerized auditing which will in turn
improve audit quality. The government should also put policies in place that will
ensure security of information and ensure safety of information in case of failures and
breakdowns.
Citation
Master Of Business Administration (mba) School Of Business, University Of Nairobi,2013Publisher
University of Nairobi, School of business,