Jul 2026· Veredas do Direito· Vol 23, pp. e235405· 0 citations· 22 references
Abstract
While governments increasingly invest in digitalisation to boost tax compliance, the actual impact of these technologies on the front lines of tax auditing remains questionable. This study investigates the paradoxical relationship between information system capabilities, regulatory frameworks, and tax audit effectiveness in developing economies, focusing on Indonesia. Using survey data from 100 tax auditors using via Partial Least Squares Structural Equation Modeling (PLS-SEM), we evaluate the core drivers of audit effectiveness. Contrary to prevailing digital-first narratives, our findings reveal that current information systems in Indonesia do not significantly enhance auditors' ability to recover tax underpayments. Instead, the regulatory structure remains the dominant factor influencing audit execution. These results highlight a critical disconnect: to optimize revenue collection, policymakers must prioritise regulatory simplification to empower auditors, while undertaking strategic overhauls of IT investments to ensure digital tools generate operationally relevant, actionable outputs.
This study explored the nonlinear link between digital transformation and audit quality in manufacturing alongside supply chain concentration effects. It was conducted because traditional linear research ignores complex digitalization risks, like algorithmic black boxes, failing to fit manufacturing's unique financial integration contexts. The authors applied a framework combining mathematical deduction of misstatement risks, game theory, and panel regression on data from 12,450 Chinese A-share manufacturers from 2012 to 2022. The findings revealed an inverted U-shaped relationship where early transformation raises risks and lowers audit quality up to a critical point (Digital Transformation (DT)=1.58)—after which standardized governance reduces risks. Additionally, high supply chain concentration accelerates this benefit. This means managers must strategically pace information technology investments around this threshold, while auditors should adapt resource allocation to specific digital maturity stages to safely capture transparency dividends.
Dan-Hui Meng· Information Resources Manage...· 0 citations
Audit quality has become a critical issue in ensuring the credibility of financial statements,
particularly amid increasing business complexity and inconsistent empirical findings regarding
its determinants. This study aims to examine the effect of audit tenure, audit delay, PAF size,
audit fee, and firm size on audit quality in consumer goods companies listed on the Indonesia
Stock Exchange during the 2020–2024 period. The research employs a quantitative approach
using secondary data and applies purposive sampling, resulting in 49 companies with 186
observations. Logistic regression analysis is used because audit quality is proxied by audit
opinions (unqualified and non-unqualified opinions). The findings indicate that audit delay has a
significant negative effect on audit quality, while audit fee has a significant positive effect. In
contrast, audit tenure, PAF size, and firm size do not show significant effects.
S. Handoyo, Yulianisa Dwi Maharani· International journal of eco...· 0 citations
The rapid diffusion of digital technologies has fundamentally reshaped the way organizations generate and report financial and non-financial information, challenging traditional audit approaches that rely on manual and sample-based procedures. Building on this context, this paper aimed to provide a comprehensive synthesis of empirical evidence regarding the impact of digital technologies on auditing and to identify the key factors influencing their adoption across internal, external, and public sector audit functions during the 2015–2026 period. Using a qualitative descriptive design and a systematic literature review guided by the PICOC framework and PRISMA protocol, 33 relevant articles indexed in Scopus were selected from an initial pool of 959 publications. The findings showed that the use of various technologies, including computer-assisted audit techniques (CAATs), audit analytics, big data, artificial intelligence, robotic process automation, blockchain, and process mining, generally enhanced the effectiveness and efficiency of audit procedures, strengthened internal controls, and reduced errors and financial statement restatements, while simultaneously repositioning auditors as more strategic and data-driven partners. At the same time, the success of digital audit transformation was strongly influenced by technological infrastructure, data governance and security, organizational capabilities, leadership support, regulatory environments, and auditors’ individual competencies, indicating that digitalization was neither a neutral nor an automatic process. This study provides practical implications for audit firms, internal audit units, supreme audit institutions, and regulators in developing more targeted and sustainable digital audit strategies, while also proposing future research directions concerning the organizational and institutional dynamics of digital auditing.
Christine Belgina Saurmauli, K. Rahmayanti· Journal of social research· 0 citations
The role of internal auditors is crucial as an early warning system for violations or irregularities that indicate corruption, collusion, and nepotism, both in central and regional governments. Government internal auditors are expected to detect fraud early on that could harm state finances. However, in reality, the practice of corruption, collusion, and nepotism continues and is increasing. This raises questions about the effectiveness of government internal auditors. This study aims to examine and analyze the influence of competence and goal orientation on auditor performance. The study population consisted of auditors in Inspectorates throughout Riau Province, with 214 auditors selected through purposive sampling. The analytical method used in this study is Structural Equation Modeling (SEM). The novelty of this study is the incorporation of motivational goal orientation that psychologically actualizes auditors' technical capabilities, resulting in reliable performance improvements in high-risk environments. Public sector oversight needs to shift the focus of its capacity-building initiatives from merely developing technical skills to fostering a flexible and learning-oriented attitude.
Jurnal Kajian, Akuntansi dan, Bisnis Terkini et al.· Current: Jurnal Kajian Akun...· 0 citations
Purpose. This study investigates how tax litigation affects the length, tone, clarity, and complexity of audit opinions for companies listed on Brazil’s B3 exchange, and the implications for financial reporting transparency and trust.
Design/methodology/approach. A fixed-effects panel analysis is applied to 233 firms (3,241 firm-year observations) from 2009 to 2023. Tax litigation is measured as the ratio of tax-related provisions and contingencies to total assets. Audit opinion attributes (length, tone, readability, complexity) are quantified alongside various control variables (firm size, risk, etc.). Hypotheses are tested using regression and quantile regression.
Findings. Higher tax litigation is associated with shorter audit opinions that paradoxically exhibit greater clarity and more technical complexity. Auditors appear to provide more focused, readable reports with additional technical details for firms facing significant tax disputes. Other factors (e.g., firm size, risk, governance) also show significant effects on audit opinion metrics.
Originality. This study is the first to identify tax litigation as a significant determinant of audit report characteristics in Brazil. It extends the literature by demonstrating how auditors adjust their reporting strategy under high tax-risk conditions, balancing thorough disclosure with concise communication.
Practical implications. Managers should strengthen tax compliance and governance to reduce litigation-related reporting complexities. Regulators might simplify tax codes to mitigate disputes and associated audit burdens. Auditors should enhance documentation and clarity when auditing clients with high tax risk to uphold transparency and stakeholder trust.
Antonio Lopo Martinez, Arquimedes De Jesus Moraes, Fernando Ferreira dos Santos et al.· Revue Gestion et Organisatio...· 0 citations
Governance gaps in high-value startups often stem from an imbalance between business growth ambitions and the integrity of internal oversight. This study analyzes the impact of governance gaps on fraud risk through the mediating role of audit quality, using a case study of alleged financial statement manipulation at eFishery during the 2024–2025 period. Using a quantitative PLS-SEM approach based on SmartPLS on data from 114 auditor respondents in Indonesia, the results show that governance gaps do not have a significant direct effect on fraud risk, but do have a significant positive effect on audit quality. Audit quality fully mediates this relationship. These findings underscore the critical role of auditor independence and skepticism as the last line of defense. Implications: Regulators and management need to strengthen audit quality alongside governance reforms to ensure ethical business sustainability.
Hesri Restu Afifah, Arnold Kelvianto Hidayat, Naufal Nabila Masadi· Jurnal Riset Akuntansi Soedi...· 0 citations