Abstract
The banking sector is experiencing a rapid technological transformation shifting from
traditional and paper-based auditing to computer-based auditing, necessitating the need for
internal auditors to adopt computer-assisted audit techniques (CAATs) to maintain efficiency
and effectiveness. These new tools offer numerous advantages such as efficiently analysing
large datasets, improving accuracy, large audit coverage, detecting anomalies and fraud,
improving internal control, saving time, ensuring compliance and supporting data driven
decision making. Despite these advantages, CAATs are reported as being underutilised in the
South African banking sector, which poses real problems that may endanger the quality and
integrity of financial reporting and risk management. Thus, this study aimed at assessing the
CAATs on internal auditing in the South African banking sector, exploring their
conceptualisations, advantages, disadvantages, and crucially, identifying the factors inhibiting
their full adoption.
To collect the data, a qualitative research approach, supported by exploratory research design
and underpinned by an interpretivist philosophy and a cross-sectional design was employed.
Data was collected from semi-structured interviews with 15 professionals in different
assurance roles such as internal auditors, data scientists, compliance officers, risk managers
at a large South African financial institution in the Gauteng Province, using purposive
sampling. The findings were analysed using thematic analysis, which corresponded with the
themes in the literature review. Among the findings, study participants mentioned several
CAATs, including SQL (88%), Excel (75%), Power BI (72%), ACL (63%), and Python (38%),
while Access, SAS, Microsoft Azure, Teammate, and DigiAUD being less mentioned. These
tools were mainly used for data extraction, managing large datasets, simplifying tasks
compatible with the automation of audit tasks, and the management and documentation of
work audit workpapers within the CAATs framework in auditing. Data extraction, manipulation
of large datasets, simplification of tasks, automation, analysis, visualisation, and
documentation were highlighted as the major functions of CAATs within auditing.
Participants mentioned detecting fraud and regulatory compliance in predictive modelling as
proof CAATs improved audit quality, supported risk assessment, and advanced the completion
of tasks by 95%. CAATs substantially reduced the time needed to complete audits. All the
participants agreed that limited technical skills among auditors and the high costs associated
with licensing, implementation and infrastructure are the major barriers inhibiting the full
adoption of CAATs. Other significant barriers included resistance to change, often tied to
discomfort with technology and traditional mindsets, along with time constraints for learning...