Adoption of RPA Technology in Micro and Small Audit Entities

Abstract

This study explores the adoption of robot process automation (RPA) technology among micro and small audit entities. Whereas studies on RPA adoption have focused on the Big 4, this study contributes by examining (1) micro and small independent audit firms and (2) small, provincial offices affiliated with large audit firms such as the Big 4. The contribution also includes insight into the autonomy of RPA adoption of these small, provincial-affiliated offices. By drawing upon innovation adoption theory, we analyze interview data concerning partners’ and managers’ assessments of adoption decisions. The nonadoption of RPA is explained by three lags: a standardization–regulation lag, a supply side (auditor) lag, and a demand side (audit client) lag. The small, provincial offices affiliated with large audit firms experience autonomy regarding RPA adoption when they carry out audit assignments on their local clients: “Big 4 auditor” is not a homogenous concept in this respect.