Factors Influencing Audit Quality of Audit Firms in Ghana: The Role of Audit Automation Adoption, Corporate Culture, and Technological Training

Abstract

The study examined the factors influencing audit quality, the role of audit automation adoption, corporate culture and technological training among audit firms in Ghana. The study employed a positivist paradigm, a quantitative research approach and an explanatory research design. Using simple random sampling, data was obtained from 190 audit firms in good standing with the Institute of Chartered Accountants, Ghana (ICAG). Partial least square structural equation modelling (PLS-SEM) was used to analyse the data by employing the concept of higher-order constructs. The study revealed that corporate culture weakened the effect of technological factors on audit quality. Furthermore, technological training strengthened the effect of individual factors and technological factors on audit automation adoption but weakened the effect of environmental factors on audit automation adoption. The study recommends that by addressing cultural barriers and promoting a harmonious integration of technology and audit quality goals, audit firms can create an environment where technology becomes an enabler rather than an obstacle. The study further recommends that training programmes should be designed and tailored to address specific individual and technological factors that enhance successful audit automation adoption. The study contributes significantly to the auditing literature. It extends prior research on the factors influencing audit quality and the roles of audit automation adoption, corporate culture and technological training. The study is one of the first studies to investigate the predictors of audit automation adoption and audit quality within external audits using the TOE and UTAUT frameworks which few studies have attempted to explore.