(IJACSA) International Journal of Advanced Computer Science and Applications, Vol. 12, No. 8, 2021 526 | Page www.ijacsa.thesai.org Auditor's Perception on Technology Transformation: Blockchain and CAATs on Audit Quality in Indonesia Meiryani 1 , Monika Sujanto 2 , ASL Lindawati 3 , Arif Zulkarnain 4 , Suryadiputra Liawatimena 5 Accounting Department, Faculty of Economics and Communication, Bina Nusantara University, Jakarta, 11480 Indonesia 1, 2, 3 Hotel Management Department, Faculty of Economics and Communication Bina Nusantara University, Jakarta, 11480 Indonesia 4 Computer Science Department, BINUS Graduate Program – Master of Computer Science, Bina Nusantara University 5 Abstract—The purpose of this study is to analyze the auditor’s perception of the implementation of technology transformation such as: blockchain and CAATs that can affect audit quality at the Big Four Public Accounting Firm in Jakarta. This study uses quantitative research methods using a combination of primary and secondary data. The data collection techniques used in this study was questionnaires. The sample was taken using purposive sampling method, which resulted in 60 respondents. Data analysis was carried out with SmartPLS 3.0 and IBM SPSS 26 software which resulted in the conclusion that the auditor’s perception of the implementation of blockchain had a significant positive effect on audit quality, while the auditor’s perception of the implementation of CAATs had no significant positive effect on audit quality. Keywords—Blockchain; CAATs; audit quality; auditor’s perception; technology transformation I. INTRODUCTION The technological revolution and new business models emphasize the rapid use of technology. Technology has changed audit data processing and data storage from manual to automated. The role of auditors is increasingly important when digitalization in business processes is increasingly dominant [8]. The development of information technology in the company is not in line with changes in information technology-based auditing practices. This statement is supported by a World Bank report which states that auditors in Indonesia tend to use simple procedures to detect fraud and provide opinions on “going concern” assumptions. In this case, there is no rigorous process and it is a challenge to provide an accurate audit opinion as stakeholders feel they do not have sufficient information. This leads to questionable audit quality. To address audit quality issues, it is necessary to apply best audit practices by leveraging technological transformations in the audit process such as the use of blockchain and CAATs. The facts on the ground show that there are many problems related to audit quality, such as: SNP Finance, PT Hanson International Tbk, Indosat Ooredo, Garuda Indonesia, PT KAI (Indonesian Railways). KAP really needs to solve the problem of high audit fees, low efficiency and high audit risk. It seems that blockchain is becoming the next step in the digital era and is expected to have an impact on business and society and attract the attention of scholars and practitioners [16]. In addition to blockchain, CAATs are one of the technological transformations in the field of auditing. CAATs can support auditors in collecting big data as audit evidence and analyzing it in a single database. The more data that is used as evidence, the less likely there is to be fraud or fraud. Although the cost of implementing CAATs is high, it reduces the work cost of the company's entire audit activity by increasing productivity and reducing the number of errors in the audit process. CAATs can help auditors provide the best service for their clients [15, 22]. New discoveries such as big data and other similar technological advances have greatly increased the opportunities to improve current audit quality and practice. Due to audit limitations and lack of time, the auditor is forced to choose a smaller sample size, which can also lead to possible risk assessment and inadequate audit procedures. The contribution of this research is to determine audit quality through auditors' perceptions of technological transformation in the form of Blockchain and CAATs in public accounting firms in Indonesia. II. THEORETICAL FRAMEWORK A. Agency Theory High audit quality can improve the quality of financial reports and support wise investment decisions and financial stability, but can also be used as a monitoring mechanism to reduce asymmetric information between managers and shareholders [5, 20]. Audit quality can help companies obtain credit from the most prestigious creditors and attract potential investors to invest [17, 21]. Audit quality plays an important role in increasing public confidence in the capital market by providing better information and confidence in the reliability and accountability of financial reports reported by management. Agency theory can be defined as the relationship between the owner (principal) and management (agent), where the principal authorizes the agent to manage the company. If the principal and agent have the same goal, the agent will act in accordance with the wishes of the principal, agency problems arise when there are differences in the objectives of the principal and agent which gives rise to asymmetric information which is the difference in information between the principal and the agent, where the agent has more and more information than the principal because the agent spends more