Jul 2026· Arab Economic and Business Journal· Vol 18· 0 citations
TL;DR
This study identifies the factors that make auditors either willing or unwilling to trust in AI-powered audit processes and addresses the gap in the literature regarding AI auditing by focusing on the practical conditions for building trust in uncertain audit settings.
Abstract
This study explores auditors’ trust in AI in a limited-resource and turbulent context, namely Lebanon. Using semi-structured interviews with 14 junior and senior auditors in Lebanon, this study identifies the factors that make auditors either willing or unwilling to trust in AI-powered audit processes. The results indicate that auditors perceive the potential benefits of AI, such as increased speed, capacity, and ability to detect anomalies. Yet, trust in AI is limited by concerns about implementation costs, the erosion of professional judgment, blockchain complexity, data overload, and reliance on high-quality data. Instead of excluding AI from the equation, auditors perceive it as tolerable only in conjunction with the role of a person who provides control and supervision, transparent and explainable output, proper management of input data, and established accountability processes. This study addresses the gap in the literature regarding AI auditing by focusing on the practical conditions for building trust in uncertain audit settings
The effectiveness of audit decisions relies heavily on the quality of the judgment exercised during audits. Consequently, this study sought to explore how auditors’ competence, compliance pressures, and task intricacy influence audit judgment. It focused on auditor professionalism as a variable that may moderate these effects within Public Accounting Firms (Kantor Akuntan Publik-[KAP]) located in DKI Jakarta. Using a quantitative methodology, primary data were gathered via questionnaires distributed among auditors employed at KAP in DKI Jakarta. The gathered data were processed using multiple linear regression and Moderated Regression Analysis (MRA). The findings indicate that both auditor competence and task intricacy have a positive and significant impact on audit judgments, whereas compliance pressure does not. Additionally, while auditor professionalism did not moderate the impact of auditor competence and compliance pressure on audit judgment, it significantly diminished the influence of task complexity on judgment in audits. This research faced limitations due to the prevalence of junior auditors and their reliance on questionnaire data. These outcomes provide valuable empirical insights into the role of auditor professionalism in managing task complexity within the audit judgment framework.
Elita Wulandari, Lihan Rini Puspo Wijaya, E. Puspitasari et al.· Jurnal Relevansi : Ekonomi,...· 0 citations
This study examines the effects of perceived transparency, explainability, and social influence on auditors' trust in Large Language Models, and the effect of that trust on their professional skepticism at Indonesian public accounting firms. The gap between global acceptance and trust levels toward artificial intelligence systems suggests that technology adoption is not always matched by adequate evaluation, a condition relevant to auditors, who must remain critical toward Large Language Models given their tendency to produce inaccurate answers. This study used a quantitative approach with Partial Least Squares Structural Equation Modeling, involving 102 auditors selected through purposive sampling. Results show that all three antecedent variables positively and significantly affect auditors' trust in Large Language Models, with perceived transparency contributing most, while trust in Large Language Models also positively and significantly affects professional skepticism, a direction opposite to the reliance pattern reported in prior audit automation literature. These findings suggest that trust in artificial intelligence based technology can form in a calibrated manner, coexisting with auditors' awareness of system limitations rather than diminishing their professional skepticism.
Kamal Amarullah, H. Ritchi, A. Mubarrok· Dinasti International Journa...· 0 citations
This paper addresses the gap in the literature regarding the adoption of Big Data Analytics (BDA) by auditors and its impact on professional skepticism (PS). It explores how auditors’ personal traits, such as prior experience, self-efficacy, and trust, influence their perceived usefulness (PU) and perceived ease of use (PEU) of BDA. Additionally, it examines how these perceptions affect their behavioral intentions (BI) to adopt BDA tools, whether this leads to actual usage (AU), and subsequently investigates whether the AU of BDA impacts PS. A questionnaire was prepared and distributed to 94 external auditors from the Big Four auditing firms in Palestine (86% response rate) by adopting the census method. The findings indicate that certain auditors’ characteristics positively influence perceptions of BDA’s usefulness and ease of use, subsequently affecting adoption intentions and actual adoption. However, not all auditors’ characteristics show this positive influence. Furthermore, the AU of BDA is found to significantly impact PS, suggesting that BDA tools could enhance audit quality. The study’s results emphasize the importance of keeping PS strong as technology evolves. These findings are essential for audit firms looking to use BDA to improve audit quality.
Moath Abdelkarim Abu Al Rob, Mohd Nazli Mohd Nor, Zalailah Salleh· Contemporary Management Rese...· 0 citations
Audit quality remains difficult for investors, audit committees, and other external stakeholders to define and evaluate because standardized, publicly available measures are limited. This article examines perceptions of audit quality through semi-structured interviews with three experienced participants in the financial reporting ecosystem: an audit committee member, a multinational corporation financial statement preparer, and a wealth management partner representing an investor perspective. The interviews indicate that audit quality is influenced not only by firm resources and regulatory oversight, but also by engagement-team continuity, partner expertise and judgment, audit committee diligence, and the ability to focus on areas of meaningful risk. Participants also identified concerns regarding personnel turnover, increasingly prescriptive audit procedures, the expectation gap, and the growing use of artificial intelligence in auditing. The article recommends expanding opportunities for junior auditors to address complex technical matters and reconsidering the nature of audit-quality disclosures. In particular, disclosures concerning how artificial intelligence is used, the audit tasks it performs, its effect on testing scope, and resulting efficiencies may provide stakeholders with more useful information for evaluating audit quality
Tripp Petzel, Albert L. Nagy· CPA Publisher· 0 citations
Audit quality is a crucial element in maintaining public trust in financial reporting and ensuring the credibility of information used by stakeholders in economic decision-making. However, several audit failures have demonstrated that audit quality remains a significant challenge, particularly when auditors encounter threats to professional judgment, independence, accountability, and objectivity. This study aims to examine and synthesize previous research findings regarding the roles of auditor independence, accountability, and objectivity in improving audit quality within the public accounting profession in Indonesia. This research employed a Systematic Literature Review (SLR) method by analyzing relevant scientific publications obtained from databases, including Google Scholar, Garuda, and SINTA. The selected articles were evaluated based on predetermined inclusion criteria and analyzed using qualitative content analysis to identify research patterns, relationships among variables, and research gaps. The findings indicate that auditor independence is a fundamental factor influencing audit quality because it enables auditors to provide impartial judgments without external pressure or conflicts of interest. Furthermore, accountability encourages auditors to conduct audit procedures carefully and responsibly, while objectivity ensures fairness and neutrality in evaluating audit evidence. The discussion highlights that these three professional attributes complement one another in strengthening audit credibility and stakeholder confidence. This study concludes that improving audit quality requires continuous efforts from auditors, Public Accounting Firms (PAFs), regulators, and professional organizations through ethical enforcement, effective quality control systems, competency development, and the strengthening of professional standards.
Allya Nathalie Radina S, Ardiansyah Ardiansyah· Journal of social research· 0 citations
Background: The auditing profession continues to face a credibility crisis due to recurring corporate scandals that undermine public trust in audit quality and Public Accounting Firm (PAF) reputation. Previous studies examining the effects of auditor competence and independence have reported inconsistent findings, indicating the need for a more comprehensive model that incorporates moderating and mediating variables.
Objective: This study aims to develop a reputable PAF model in Indonesia by examining the effects of competence and independence on audit quality and PAF reputation, with professional commitment and professional oversight serving as moderating variables and audit quality serving as a mediating variable.
Methods: A quantitative explanatory survey was conducted involving 1,432 active Public Accountants in Indonesia. Using random sampling, 312 respondents were selected, of whom 289 provided valid responses. Data were collected through structured questionnaires and analyzed using Smart Partial Least Squares (SmartPLS), including measurement model evaluation and moderation–mediation analysis.
Results: Competence and independence significantly enhance audit quality and PAF reputation. Professional commitment and professional oversight strengthen the effects of competence and independence on audit quality, while audit quality significantly mediates the relationship between these factors and PAF reputation. These findings support an integrated model that links individual, professional, and organizational factors.
Conclusion: A reputable PAF is established through the integration of competence, independence, professional commitment, professional oversight, and audit quality. This model provides practical guidance for strengthening audit credibility, enhancing competitive advantage, increasing stakeholder trust, and supporting the long-term sustainability of Public Accounting Firms in Indonesia.
Yulia Tri Kusumawati, Abdul Halim· Inkubis Jurnal Ekonomi dan B...· 0 citations