Technology readiness and data analytics competencies of the Muslim and non-Muslim external auditors: A comparative analysis

• Main Authors: Jaffar, Nahariah, Aziz Ahmad, Abdul Aziz, Sulaiman, Noor Adwa
• Format: Article
• Published: Emerald Group Holdings Ltd. 2022
• Subjects: HG Finance
• Online Access: http://eprints.um.edu.my/43570/

Purpose: The purpose of this study was to investigate the level of technology readiness (TR) of the Muslim and non-Muslim external auditors and its effect on their data analytics competencies (DACs). Literature is insufficient in addressing the comparative analysis of these constructs among these auditing professionals. Design/methodology/approach: A survey was conducted on 201 external auditors. Questionnaire was developed based on TR and DAC literature. Pilot testing was conducted on 50 respondents, who were drawn from the sample. Findings: Non-Muslim external auditors were found to be more technology ready than Muslim external auditors. The optimum dimension of TR was significantly different between Muslim and non-Muslim external auditors. Significant mean difference was found only for personal capabilities dimension of DAC between Muslim and non-Muslim external auditors. TR had a significant effect on Muslim external auditors’ personal capabilities dimension of DAC; however, there was insignificant effect on all DAC dimensions for non-Muslim external auditors. The highest DAC score of the external auditors were only at the beginner level for technical skills and technologies and tools expertise dimensions. Research limitations/implications: Using students as proxies for external auditors could lead to concerns with generalisability. Nonetheless, these students were competent to act as proxies as they had completed a six-month internship at an accounting firm. Practical implications: The findings manifested the need for Muslim external auditors to be more technology ready. External auditors need to enhance their DAC to meet digital economic needs. Originality/value: This study advocated the importance for auditing professionals to acknowledge the new data analytics challenges. © 2020, Emerald Publishing Limited.