Investigating the influence of technology adoption: a qualitative study on small and medium-sized audit firms

The adoption of technological advancements in the audit landscape to ease and facilitate the work of financial auditing has brought about a shift in the authenticity and reliability of audit reports. The study aims to examine the impact of technology on present-day external auditing in small and medium sized audit firms. It also identifies ethical and technological risks arising from overreliance on technology and outline steps for mitigating those risks. Ten semi-structured interviews were conducted on auditors within Klang Valley, Malaysia to elicit their opinions on the research issues. The study found that technological advancements enhance the authenticity of audit firms through the increase involvement and transparency towards clients. Technology also makes it extremely convenient for auditors in terms of collaboration, documentation, and ease of access to large amounts of data or evidence. These conveniences allow for better judgement and decision making for the finalization of an audit report, which is where the human element is crucial. However, a firm must exercise caution and be diligent in its research when implementing new technology. Furthermore, the staff in the audit firm must not lag behind in terms of IT knowledge and ethical behaviors when it comes to the usage of new technology.