AN ANALYZE THE EFFECT OF ROBOTIC PROCESS AUTOMATION ON ACCOUNTING AND AUDITING PRACTICES WITH MODERATING EFFECT OF REGULATORY FRAMEWORK IN THE PUBLIC SECTOR ORGANIZATIONS OF KHYBER PAKHTUNKHWA

Abstract

Robotic Process Automation plays a key role in improving efficiency, accuracy, and transparency in accounting and auditing practices. Robotic Process Automation has emerged as an effective tool for automating routine, rule-based tasks, improving efficiency, accuracy, and compliance. However, empirical evidence on the effect of robotic process automation on accounting and auditing practices in public sector organizations of Khyber Pakhtunkhwa, particularly under varying regulatory conditions, remains limited. This study investigates the effect of robotic process automation on accounting and auditing practices with the regulatory framework as a moderating role in public sector organizations of Khyber Pakhtunkhwa, Pakistan. The study adopts a quantitative research design based on primary data collected through a structured questionnaire from 562 accounting and auditing professionals working in public sector organizations in district Peshawar. A multi stage sampling technique was employed to ensure representativeness. Data were analyzed using descriptive statistics, correlation analysis, multiple regression, and structural equation model. The findings reveal that robotic process automation has a significant positive effect on both public sector accounting and auditing practices, enhancing efficiency, accuracy, audit quality, and compliance. Moreover, the regulatory framework significantly moderates these relationships, indicating that clear regulations, compliance mechanisms, and institutional support strengthen the effectiveness of robotic process automation adoption. The results highlight the importance of combining technological innovation with a supportive regulatory framework to improve public sector accounting and auditing practices. This study contributes to the limited empirical literature on robotic process automation in public sector accounting and auditing practices in developing economies and offers practical insights for policymakers, regulators, and public administrators seeking to enhance transparency, accountability, accuracy and efficiency through robotic process automation.