The Role of Technology in Enhancing Audit Effectiveness Among Auditing Firms in Kenya

Abstract

This study investigated the role of technology in enhancing audit effectiveness among Kenyan auditing firms, focusing on the impact of technology adoption, auditor expertise, technological infrastructure, and organizational support. Using a descriptive research design and a sample of 80 firms selected through snowball sampling, the study applied descriptive and regression analyses to reveal that technology adoption significantly improves audit effectiveness, shown by a correlation coefficient (r) of 0.401 and an R² value of 0.161, indicating that technology factors account for 16.1% of the variability in audit effectiveness. Technologies such as data analytics and artificial intelligence were highly valued, with mean scores of 4.34 (SD = 0.795) and 4.28 (SD = 0.842), respectively, for their roles in enhancing accuracy and efficiency, while blockchain technology, rated slightly lower at a mean of 4.09 (SD = 1.046), was noted for increasing security and transparency. Regression analysis confirmed technology adoption's significant positive effect (β = 0.313, p = 0.010) on audit effectiveness, emphasizing the need for advanced tools in audit processes. Interestingly, while organizational support was positively correlated with audit effectiveness, its regression coefficient was negative (β = -0.407, p = 0.003), suggesting that over-reliance on organizational support could hinder auditor independence and initiative. Other factors, including auditor expertise (β = 0.063, p = 0.629) and infrastructure (β = 0.188, p = 0.166), were not statistically significant, highlighting that technology’s full benefits are best realized when coupled with proactive auditor training and balanced support. Concluding that technology is vital for audit quality, the study recommends strategic investment in advanced tools, continuous training programs, and regulatory adaptations to create a more effective, secure, and high-quality audit environment for Kenyan firms in an increasingly digitalized landscape.