The factors influencing auditors’ readiness for accrual accounting adoption: a case study / Erlane K Ghani, Wan Nur Hafidah Wan Jusoh and Razinah Hassan

This study examines the factors that influence the readiness of the auditors in the National Audit Department of Malaysia for accrual accounting adoption by the Malaysian Federal Government. 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.