RECONCEPTUALIZING AUDIT QUALITY IN THE ERA OF ESG AND DIGITALIZATION: A VALUE ADDITION FRAMEWORK

Abstract

This study develops a framework to reconceptualize audit quality as a multi-dimensional mechanism for value addition. Taking support from the stakeholder concept, the paper proposes that audit quality leads to value addition for businesses through an intervening role of sustainable business practices and intervention of technology. Additionally, the presented framework acknowledges the role of institutional factors in shaping the relationship between audit quality, sustainability, technology, and value addition. The study contributes to literature by providing an integrated approach to consider the business case for the audit profession in light of evolving stakeholder expectations and modern disruptions. The framework presented also highlights potential testable avenues for scholars for empirical examinations. As such, by connecting various research streams, the current study attempts to provide a holistic understanding of audit quality in modern business era.