Abstract
Purpose
This study examines the readiness of Jordanian-listed firms toward the application of Computer Assisted Audit Tools and Techniques (CAATTs) during the post-Covid-19 epidemic period. In particular, we identify the factors impacting the adoption of CAATTs from the auditee perspective based on the Organizational Readiness for Change (ORC) model, including motivation for change, staff attributes, institutional resources, organizational climate and the Technology Readiness Index (TRI) factors, namely, optimism, innovativeness, discomfort and insecurity.
Design/methodology/approach
A cross-sectional survey was developed and distributed to 138 employees working in the accounting departments of Jordanian-listed firms. Where partial least square structural equation modeling (PLS-SEM) is used to examine the study hypotheses.
Findings
The results show a significant direct relationship of motivation for change, staff attributes, institutional resources, organizational climate and discomfort on readiness for change. Moreover, the results reveal that perceived fear of Covid-19 has a moderating effect on the direct relationship between motivation for change and readiness for change. However, the proposed relationships between optimism, innovativeness and insecurity with readiness for change were not significant.
Originality/value
This paper highlights the readiness toward CAATTs application from the auditee perspective rather than the external auditors. Moreover, this paper considers the changes in the work environment resulting from the Covid-19 pandemic on the motivation for change toward CAATTs. Where the study proposes four external constructs that impact the readiness of Jordanian-listed firms toward the application of CAATTs following the ORC model. Furthermore, it provides another four internal factors that can also impact readiness for CAATTs adoption following the TRI. Lastly, the paper reveals the moderating role of perceived fear of Covid-19 on the influence of motivation for change on readiness to change. Hence, this paper set the basis for policymakers and practitioners toward evaluating the readiness of Jordanian-listed firms for CAATTs application.