Audit Technology as a Catalyst for Improving Non-Financial Performance in Ethiopian Audit Firms

Abstract

Adopting computer-assisted audit techniques (CAATs) is transforming the auditing profession globally. As technological advancements continue to shape the audit landscape, understanding how CAATs influence non- f inancial performance outcomes is essential. However, little is known about their impact on non-financial performance in audit firms, particularly in developing countries like Ethiopia. This study investigates how CAATs influence non-financial performance metrics, including client relationships, employee engagement, and operational efficiency. A quantitative approach was adopted to analyze survey data collected from 122 audit professionals across Ethiopian audit firms in 2023. The findings reveal that the adoption of CAATs significantly correlates with client relationships, employee engagement, and operational efficiency, while its impact on operational efficiency is moderated by organizational readiness. The study highlights the need for strategic technological investments to enhance non-financial performance outcomes. This study offers original empirical evidence on the non-financial impacts of CAATs in the context of Ethiopian audit firms, filling a notable gap in the existing literature.