AI Adoption and Audit Quality in Public Survey and Firm Inspection Data

This study evaluates the association between AI-related questionnaire scores and audit-quality perceptions and examines what that association can establish about audit firms. A secondary analysis uses 98 respondent records and 25 items released by Handoko (2025). Equal-weight block scores are analysed using ordinary least squares, HC3 uncertainty estimates, rank correlations, alternative scoring, item-omission checks and row resampling. The AI–AQ correlation is 0.819. The AI coefficient is 0.735 in the unadjusted model and 0.731 after adjustment for four additional questionnaire blocks, with a 95% HC3 interval of 0.523–0.939. However, the AI–AQ heterotrait–monotrait ratio is 0.903, and several other block pairs exceed 1.00. Strong internal consistency therefore coexists with weak empirical separation. A separate descriptive analysis of UK Big Four inspection reports records 190 satisfactory or limited-improvement outcomes across 223 inspection instances in three cycles. These outcomes are not linked to the questionnaire respondents or to matched AI expenditure. The contribution is a reproducible assessment of the gap between observable association and an investment-effect claim. The evidence supports a positive association in the released questionnaire matrix, while neither its construct validity nor a causal return to firm-level AI expenditure is established.

Authors

Institutions

Publication Details

Journal
Academic journal of management and social sciences
Published
2026-10-28
DOI
https://doi.org/10.54097/39t12g83
Primary Topic
Auditing, Earnings Management, Governance
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

AI Adoption and Audit Quality in Public Survey and Firm Inspection Data

Xiaohang Li, Yanjun Liu
Academic journal of management and social sciences
Auditing, Earnings Management, Governance
article

AI Adoption and Audit Quality in Public Survey and Firm Inspection Data

Xiaohang Li, Yanjun Liu
article en

Abstract

This study evaluates the association between AI-related questionnaire scores and audit-quality perceptions and examines what that association can establish about audit firms. A secondary analysis uses 98 respondent records and 25 items released by Handoko (2025). Equal-weight block scores are analysed using ordinary least squares, HC3 uncertainty estimates, rank correlations, alternative scoring, item-omission checks and row resampling. The AI–AQ correlation is 0.819. The AI coefficient is 0.735 in the unadjusted model and 0.731 after adjustment for four additional questionnaire blocks, with a 95% HC3 interval of 0.523–0.939. However, the AI–AQ heterotrait–monotrait ratio is 0.903, and several other block pairs exceed 1.00. Strong internal consistency therefore coexists with weak empirical separation. A separate descriptive analysis of UK Big Four inspection reports records 190 satisfactory or limited-improvement outcomes across 223 inspection instances in three cycles. These outcomes are not linked to the questionnaire respondents or to matched AI expenditure. The contribution is a reproducible assessment of the gap between observable association and an investment-effect claim. The evidence supports a positive association in the released questionnaire matrix, while neither its construct validity nor a causal return to firm-level AI expenditure is established.

Academic journal of management and social sciencesVol. 18(1)
Beihua University (CN), Hong Kong Baptist University (HK)
Openalex Percentile: Top 4%
Auditing, Earnings Management, Governance
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.

Laika access coming soon