Exploring auditor adaptability in the digital era through levels of expertise: The role of IT literacy

Abstract

As digital transformation accelerates, auditors must adapt to technologically advanced environments, which challenge traditional audit practices and require new skills. This study investigates how auditor expertise and IT literacy interact to influence adaptability in a digital context. Through a two-way ANOVA, we examine how varying levels of expertise and IT literacy jointly impact auditors' adaptability. Expertise and IT literacy levels are calculated using quartile and tertile assumptions, categorizing respondents into distinct groups. Findings indicate that auditors with both high expertise and IT literacy demonstrate significantly greater adaptability, underscoring the importance of digital skills alongside traditional competencies. IT literacy strengthens auditors' capacity to navigate complex digital systems, enhancing adaptability, while low IT literacy can restrict adaptability and hinder performance. Additionally, this study highlights key benefits and challenges in adapting to digital practices, noting that digital skills can improve audit quality if emphasized in training programs. Although digital transformation offers clear advantages, it presents challenges, such as heightened demands for digital proficiency and the need for continuous development to reduce risks. As the audit profession evolves, auditor adaptability—supported by IT literacy—will be critical in thriving within digital landscapes. The implications underscore the need for audit firms to integrate IT literacy training with traditional skill development to prepare auditors effectively for the future of digital auditing.