Determinants of Auditors’ Readiness for Accrual Accounting Adoption
Erlane K Ghani1, Wan Nur Hafidah Wan Jusoh2, Razinah Hassan3, Kamaruzzaman Muhammad4
1Erlane K Ghani, Faculty of Accountancy, Universiti Teknologi MARA, Malaysia.
2Wan Nur Hafidah Wan Jusoh, Faculty of Accountancy, Universiti Teknologi MARA, Malaysia.
3Razinah Hassan, Faculty of Accountancy, Universiti Teknologi MARA, Malaysia.
4Kamaruzzaman Muhammad, Faculty of Accountancy, Universiti Teknologi MARA, Malaysia.
Manuscript received on 10 August 2019. | Revised Manuscript received on 15 August 2019. | Manuscript published on 30 September 2019. | PP: 8664-8673 | Volume-8 Issue-3 September 2019 | Retrieval Number: C6456098319/2019©BEIESP | DOI: 10.35940/ijrte.C6456.098319
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This study examines the factors that influence the readiness of the auditors in the National Audit Department of Malaysia for accrual accounting adoption. The factors examined were change valence, task knowledge and resource availability while the auditors’ readiness were measured through change commitment and change efficacy in embracing the accrual accounting adoption. Eighty-one responses of a questionnaire survey were obtained from the auditors in the organisation in charge of auditing the Malaysian Federal Government. Multiple regressions were performed to analyse the data. The findings showed that change valence and task knowledge have a positive and significant influence on change commitment and change efficacy which reflect the auditors’ readiness for accrual accounting adoption. However, no significant positive relationship was observed for resource availability with change commitment and change efficacy. This study is important as it is the first study that examined the determinants of auditors’ readiness for accrual accounting adoption in the National Audit Department. Therefore, it would serve as a cornerstone towards supporting the National Audit Department in embracing the accrual accounting adoption.
Keywords: Accrual Accounting, Auditors, Public Sector, Readiness.
Scope of the Article: Authentication, Authorization, Accounting