Abstract
Purpose
The criteria related to the usage of Generalized Audit Software (GAS) are not well covered in the context of emerging economies; thus, this paper aims to examine the factors that influence GAS usage by external auditors in Ghana.
Design/methodology/approach
It uses a cross-sectional survey, descriptive statistics and SEM factor analysis with the modified IT Audit Quality model to analyze data from 156 auditors.
Findings
It finds that GAS is used by the majority of non-Big 4 auditors in Ghana. Top management support and adequate staff training on the wheels of anticipated advantages of using GAS and the present digitalization of the Ghanaian economy are important factors driving GAS adoption, while lack of audit methodology, inability of GAS to influence professional audit judgment, costs and difficulty in GAS operationalization are notable factors hindering the usage of GAS among auditors in Ghana.
Research limitations/implications
Although the authors’ focus on non-Big 4 audit firms is unique, the technological gap between the Big 4 and non-Big 4 audit firms presents a limitation.
Practical implications
The successful deployment of GAS requires policies that highlight positive benefits and economic backing for Ghana’s digitalization agenda. The ICAG, as a regulatory body, needs to install financial and technical supports that facilitate GAS implementation among small auditing firms. Non-Big 4 auditors need proper IT training to achieve system mastery for GAS to work effectively.
Originality/value
The study provides insights on how auditors, especially small and medium practice firms, respond to the massive development of businesses in the application of ICT to their accounting systems.
