Technologies as facilitators of dynamic capabilities in external audits during turbulent times

Lazarus Elad Fotoh, Johan Ingemar Lorentzon and Tatenda Mugwira

Accounting Research Journal, 2026, vol. 39, issue 3, 356-382

Abstract: PurposeThis study aims to explore the unique role of technologies in facilitating dynamic capabilities in external audits during turbulent times.Design/methodology/approachThe study was conducted in Sweden’s unique context, where no regulatory exemptions were granted during the COVID-19 pandemic. The authors used descriptive statistics, regression analysis and the Mann–Whitney U test on data from 237 auditors.FindingsTechnologies serve as catalysts for dynamic audit capabilities during turbulence; the size of the audit firm and its perception of relevance affect the perceived efficiency of technology. The findings underscore the need for audit firms to develop and anchor their operations, using dynamic capabilities realised through technologies, to sail through a crisis.Research limitations/implicationsThis study relies on a specific event, the COVID-19 pandemic, and may not be applicable to other events, such as a financial crisis.Practical implicationsThe results underscore the role of technology in enhancing dynamic capabilities during a crisis, potentially strengthening legitimacy with stakeholders.Social implicationsThe implications of our results extend beyond the computer-mediated communication, encompassing emerging technologies that facilitate a more comprehensive analysis of visual, auditory and physical cues, thereby enhancing auditors’ social presence.Originality/valueThis study explores an uncharted area by isolating the impact of technologies on enabling dynamic capabilities in audits conducted in turbulent environments marked by high risks, constrained procedures and the absence of regulatory exemptions. The findings highlight the critical role of technology relevance and audit size in enabling dynamic capabilities. These insights are valuable to audit regulators for providing guidance on technology use and auditors and audit firms for understanding how technologies can support dynamic capabilities in turbulent times.

Keywords: Technologies; Auditing; Dynamic capabilities; Uncertainty; Turbulent times (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arjpps:arj-01-2025-0011

DOI: 10.1108/ARJ-01-2025-0011

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