Digitalization: Can You Improve Audit Quality? Sitematic Literature Review

Abstract

This article examines the relationship between digitalization and audit quality through a literature review covering 38 primary studies. The research results show that digitalization has a significant positive impact on audit quality by improving efficiency, effectiveness, data analysis, internal control and data security. The method used is Systematic Literature Review (SLR) with a focus on the influence of information technology in the audit process. This research finds that the adoption of technologies such as robotic process automation (RPA), artificial intelligence, big data analytics, blockchain, and cloud computing has changed the way audits are conducted, especially in large companies and large audit firms. However, there are differences in technology adoption between Big 4 and non-Big 4 companies, as well as the influence of clients' information technology capabilities on audit fees during periods of economic recession and recovery. This research provides a deeper understanding of the importance of digitalization in improving audit quality and encourages audit companies to be more proactive in adopting digital technology.