Factors influencing CAATs adoption among auditors in Malaysian SMPs through behavioral intention: A conceptual paper

Abstract

The increasing digitalisation of financial reporting and auditing has heightened the importance of Computer-Assisted Audit Techniques (CAATs) in improving audit efficiency, effectiveness, and the analysis of large volumes of data. In Malaysia, initiatives such as e-Invoicing and the Malaysian Business Reporting System (MBRS) have accelerated the need for technology-enabled audit practices, particularly among Small and Medium Practices (SMPs). Despite these developments, some of the SMPs still rely on traditional auditing techniques, resulting in a relatively low level of CAATs adoption compared to larger firms. Existing studies have focused primarily on technological and organisational factors that influence the adoption of audit technology, while the behavioural intention mechanisms underlying auditors’ acceptance decisions remain underexplored. Based on the Unified Theory of Acceptance and Use of Technology (UTAUT) and related technology adoption literature, this conceptual paper proposes a framework to explain the adoption of CAATs among auditors in Malaysian SMPs. Specifically, the framework examines the influence of performance expectancy and technological skills on auditors’ behavioral intention to adopt CAATs. Behavioral intentions are proposed as a mediating mechanism linking these factors to actual CAATs adoption. Through a structured review of the literature on audit technology use, technology acceptance, and CAATs implementation, this paper synthesizes theoretical and empirical insights to develop a context-specific conceptual framework for understanding the adoption of CAATs among auditors in Malaysian SMPs. In practical terms, this study provides insights for SMPs, professional accounting bodies, and regulators in designing initiatives to strengthen auditors’ digital readiness and promote sustainable adoption of CAATs in the Malaysian auditing profession.