IT infusion within the audit process: Spreadsheet use in small audit firms

• We examine the concept of IT infusion in relation to spreadsheets in auditing firms.
• Whether audit infusion of spreadsheets is a measurable phenomenon is considered.
• We also study the factors associated with spreadsheet infusion.
• Data is gathered using case studies consisting of non-Big 4 audit firms in Thailand.
• A multi-dimensional infusion measure yielded considerable variability across firms.

This study examines spreadsheet use during different phases of the audit process using a series of case studies on independent, local non-Big 4, audit firms in Thailand. Our study adopted the concept of infusion, i.e., the use of IT to its fullest potential within work processes. We used multiple data collection methods, including face-to-face interviews and the examination of commonly used spreadsheets. The study defined a way of measuring spreadsheet infusion in the audit process based on extended, integrative and emergent use. The data provides new insights into how spreadsheets are used by audit firms. Spreadsheet infusion varied considerably across the firms, which indicates significant opportunities for increased sophistication in spreadsheet use for some small audit firms. The study also identifies many enablers of spreadsheet infusion, including IT competence, IT champion, size and complexity of clients, external support, relative advantage and observability. In contrast, staff turnover, lack of partner support, and clients' willingness to provide soft copy data were noted as infusion inhibitors. By successfully extending infusion literature into the audit arena, this study provides a basis for studying the post-adoption behaviors associated with other applications of IT in auditing.