The The Effect of Generative AI on Audit Judgment Quality through Professional Scepticism and Governance

Abstract

This study highlights the growing role of Generative Artificial Intelligence (Generative AI) in transforming contemporary audit practices, which has implications for audit judgment quality, particularly through psychological mechanisms in the form of professional scepticism and institutional support through technology governance. This study aims to analyse the effect of Generative AI utilization on audit judgment quality by considering professional scepticism as a mediating variable and technology governance as a moderating variable among external auditors working at OJK-registered Public Accounting Firms (KAP) in the Jabodetabek region. This research employs a quantitative approach with an explanatory survey design. Data were collected from 250 external auditors through a structured questionnaire using a purposive sampling technique. Data analysis was conducted using multiple linear regression and moderation analysis. The findings indicate that Generative AI utilization has a positive effect on audit judgment quality, professional scepticism significantly contributes to improving audit judgment quality, and technology governance strengthens these relationships under certain conditions. Furthermore, the mediation and moderation mechanisms play important roles in explaining the complexity of the relationships among the investigated variables.