（2006）Innovations in Audit Technology：A Model of Continuous Audit Adoption.docxVIP

Innovations in Audit Technology: A Model of Continuous Audit AdoptionJoseph B. O’DonnellCanisius CollegeJoseph B. O’Donnell ，Innovations in Audit Technology: A Model of Continuous Audit Adoption ，Journal of Applied Business and Economics，Volume 6(5) 2006，P11-19Investor confidence in the financial markets has been shaken by corporate frauds and many in the financial community are looking for solutions. The AICPA recommends a Model of Enhanced Business Reporting to improve the quality of financial reporting. The model emphasizes real-time, online financial reporting to provide timely information to the financial community. Real-time financial reporting requires continuous auditing (CA) to ensure integrity of the reported information. CA produces audit results concurrently with accounting events and is facilitated by eXtensible Business Reporting Language (XBRL), which enables seamlesstransmission of company financial information to auditor data warehouses. The success of CA is dependent on the accounting profession’s adoption, and client acceptance, of this innovation. CA offers opportunities for more effective auditing offset byimplementation and training costs. This paper develops a theoretical model of the antecedents toAdoption that is based on diffusion of innovation theory. The model addresses the influencef CA characteristics and audit firm attributes on CA adoption. The theoretical model provides aurther understanding of technological adoption in the area of auditing innovations. Auditors nd financial community members benefit from the paper by using the theoretical model to evelop strategies to promote the use of CA. INTRODUCTION Recent financial frauds and resulting legislation, e.g., Sarbanes Oxley Act, have increased the need for more frequent evaluation of financial information by auditors. At the same time, due to changes in technology, organizations are increasingly able to produce financial reports on a real-time basis. The American Institute of Certif