Navigating Digital Disruption: Challenges and Strategies for Enhancing Audit Quality in the Age of Emerging Technologies
List of Authors
Aida Hazlin Ismail, Ain Hannani Radin Ahmad Fathi, Muthyaah Mohd Jamil, Najihah Mohd Zaidi, Nurina Firzana Jailani, Siti Nur Aishah Ahmad, Siti Nursyuhada’ Sukri
Keyword
Audit Technologies; Audit Quality; Rapid Emergence; Skills Gap; Regulatory Gap
Abstract
The study explores the challenges posed by emerging digital technologies on audit quality, focusing on key aspects such as the rapid digital transformation of auditing, skills gaps, and regulatory gaps. It aims to identify effective strategies to mitigate these challenges while ensuring audit integrity and efficiency. The research employs a systematic review of academic literature sourced from reputable databases. The study analyzes 45 peer-reviewed articles and categorizes the challenges into three primary dimensions: rapid emergence of digital transformation in auditing, skills gaps, and regulatory gaps. The methodology incorporates content analysis to refine discussions on audit frameworks and mitigation strategies. The findings reveal that while technologies like artificial intelligence (AI), blockchain, and big data analytics have the potential to revolutionize auditing, their adoption faces barriers including cybersecurity risks, high implementation costs, and a significant skills gap among auditors. Regulatory gaps further exacerbate these challenges, as outdated standards and inconsistent global frameworks hinder the integration of advanced technologies. Addressing these issues requires enhanced training, strategic partnerships, and the modernization of regulations. This study contributes to the literature by offering actionable insights for practitioners, policymakers, and academics on overcoming barriers to digital transformation in auditing. By bridging skills gaps and harmonizing global regulations, the findings aim to ensure that audit practices evolve with technological advancements while maintaining reliability, transparency, and stakeholder trust. Future research is encouraged to explore empirical data and region-specific challenges to deepen the understanding of these dynamics.