The Impact of Computerized Accounting Information System on Audit Risk: The Case of External Auditors Engaged in Addis Ababa

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The study has been carried out in Addis Ababa, Ethiopia. The influence of computerized accounting information system on audit functions and the major risk that are associated with auditing in such environment have been approved by the literature relating to both developed and other developing countries. However, the impact of IT-based accounting system on audit risk has not been assessed in Ethiopia, particularly, in Addis Ababa. So, th is research fills the existing gap by evaluating empirically the influence of the utilization of Computerized Accounting Information System on the level of audit risk in the study site. The overoll objective of the study is to evaluate the impact of Computerized Accounting Information Systems on the level of audit risk the case of external auditors engaged in Addis Ababa. It seeks to identify whether the level audit risk considerobly changed due to implementing this system by the audit firm clients in the targeted area. The study used both quantitative and qualitative (mixed) approach. The research finding tries to answer questions like whether audit risk was affected due to implementation of IT-based accounting system. Self-administered questionnaire has been corried out to meet the desired objective and to address the study problem. The major findings of this study are severol variables altered audit risk related to implementing the system. These are: lack of segregation of duties; lack of awareness of the issue, problems and risk associated to the system; disappearance of audit trial; unsuitable audit approach; lack of IT training for both client staffs and auditors in such environment; lack of back up data; complexity of the system; absence of adopting advanced audit software; weakness of client internal control system and audit firm financial cost concern.



Addis Ababa, Accounting, Audit,, Auditor,, In/ormation,