 |
An International Meeting of American Accounting
Association
|
An Examination of Contextual Factors and Individual Characteristics Affecting Technology Implementation Decisions in Auditing |
Elizabeth A Payne
University of Mississippi
Mary B. Curtis
University of North Texas
Abstract: Implementing new technology in an audit engagement is often a complicated decision because the technology typically increases efficiency and effectiveness, yet there are implementation risks and costs. We examine two contextual factors (budget length and superior influence) and two individual characteristics (risk preference and budget pressure) that potentially affect the implementation decision. In particular, budget length is examined because of the conflicting goals of an in-charge to simultaneously enhance long-term firm profitability and his/her (short-term) engagement evaluation. The results of the case study suggest firms can enhance implementation of new technology by using longer-term budget and evaluation periods and by having remote superiors encourage implementation. In the absence of these contextual factors, individual characteristics come into play.