The Impact of Computerized Accounting Information System on Audit Risk: The Case of External Auditors Engaged in Addis Ababa
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Date
2011-06
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A.A.U
Abstract
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.
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Keywords
Addis Ababa, Accounting, Audit,, Auditor,, In/ormation,