Technology readiness and data analytics competencies of the Muslim and non-Muslim external auditors: a comparative analysis

Nahariah Jaffar, Abdul Aziz Aziz Ahmad and Noor Adwa Sulaiman

Journal of Islamic Accounting and Business Research, 2022, vol. 13, issue 6, 920-941

Abstract: Purpose - The purpose of this study was to investigate the level of technology readiness (TR) of the Muslim and non-Muslim external auditors and its effect on their data analytics competencies (DACs). Literature is insufficient in addressing the comparative analysis of these constructs among these auditing professionals. Design/methodology/approach - A survey was conducted on 201 external auditors. Questionnaire was developed based on TR and DAC literature. Pilot testing was conducted on 50 respondents, who were drawn from the sample. Findings - Non-Muslim external auditors were found to be more technology ready than Muslim external auditors. The optimum dimension of TR was significantly different between Muslim and non-Muslim external auditors. Significant mean difference was found only for personal capabilities dimension of DAC between Muslim and non-Muslim external auditors. TR had a significant effect on Muslim external auditors’ personal capabilities dimension of DAC; however, there was insignificant effect on all DAC dimensions for non-Muslim external auditors. The highest DAC score of the external auditors were only at the beginner level for technical skills and technologies and tools expertise dimensions. Research limitations/implications - Using students as proxies for external auditors could lead to concerns with generalisability. Nonetheless, these students were competent to act as proxies as they had completed a six-month internship at an accounting firm. Practical implications - The findings manifested the need for Muslim external auditors to be more technology ready. External auditors need to enhance their DAC to meet digital economic needs. Originality/value - This study advocated the importance for auditing professionals to acknowledge the new data analytics challenges.

Keywords: Technology readiness; Muslim; External auditors; Non-Muslim; Data analytics competencies (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jiabrp:jiabr-11-2020-0341

DOI: 10.1108/JIABR-11-2020-0341

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