Reconfiguring Human Capital Management in Audit Firms through Advanced Digital Technologies: Implications for Audit Quality and Professional Judgment

Abstract : Purpose: This study aims to examine how the restructuring of human capital management in audit firms under advanced digital technologies affects audit quality and auditors’ professional judgment. It addresses the accelerating changes in the auditing environment and the growing reliance on digital and analytical solutions within the profession. Methodology: The research adopts an analytical–interpretive approach supported by an integrated theoretical framework that combines human capital theory, dynamic capabilities theory, and the digital transformation perspective in the auditing profession. Design and Approach: A conceptual model is developed to illustrate the relationships between digitally enabled human capital management practices—such as skill development, continuous learning, human analytics, and professional decision support—and both audit quality and professional judgment. The model is empirically tested using a quantitative approach based on field data collected from audit firms, employing appropriate statistical models to test the research hypotheses. Findings: The findings reveal a positive and statistically significant impact of digitally driven human capital management restructuring on both audit quality and the level of professional judgment. The strength of this impact varies according to the degree of digital maturity across audit firms. Originality and Value: This study makes an original contribution by directly linking the digital transformation of human capital management to audit outcomes, a relationship that remains underexplored in international auditing literature, particularly within the context of emerging economies. Theoretical, Practical, and Social Implications: Theoretically, the study enhances understanding of the role of digital human capital in advancing the auditing profession. Practically, it provides guidance for audit firms and regulatory bodies in developing policies for capability building and professional development. Socially, it contributes to strengthening confidence in audit outcomes and protecting stakeholders’ interests.