Impact of Electronic Auditing Tool Utilization on Audit Performance: The Mediating Role of Auditor's Digital Competence

Abstract

While the adoption of electronic auditing tools is widespread, the mechanism through which these tools translate into improved audit performance remains underexplored. This study aims to fill this gap by investigating the mediating role of auditor's digital competence in the relationship between electronic auditing tool utilization and audit performance (encompassing both efficiency and
effectiveness).
Methodology: This quantitative study investigates the impact of electronic auditing tool utilization on audit performance, mediated by auditors’ digital competence. Data were collected from 150 external auditors in Jordan using validated instruments adapted from prior research. The proposed relationships
were tested using regression-based mediation analysis to ensure empirical rigor.
Findings: The results confirm the hypothesized model. Electronic auditing tool utilization was found to have a significant positive impact on both auditor's digital competence and overall audit performance. More importantly, the findings reveal that auditor's digital competence acts as a significant mediator. This indicates that the positive effect of tool utilization on audit performance is largely transmitted through the enhancement of auditors' digital skills, rather than being a direct consequence of the technology itself. Originality & Implications: This study's primary contribution lies in empirically demonstrating how technology improves audit performance, highlighting that investment in human capital is as critical as investment in technology. The findings have significant practical implications for
audit firms, suggesting that technology acquisition must be coupled with robust training programs designed to build genuine digital competence. For academia, the study underscores the need to integrate practical data analytics skills into auditing curricula. This research extends the literature by providing a
nuanced, mediational understanding of technology's role in modern auditing