AI Adoption, Audit Outcomes, and Professional Reputation

This study examines the adoption of AI-powered audit tools in Indonesia, analyzing organizational antecedents, cognitive-perceptual mediators, and the moderating role of corporate governance in shaping audit efficiency, audit decision quality, and auditor professional reputation. Using data from 320 external auditors and partial least squares structural equation modeling, results show that top management support and innovation climate significantly promote AI adoption, while technology readiness and vendor ecosystem support do not. Auditor confidence mediates the link between AI adoption and audit efficiency, and perceived usefulness mediates the link with audit decision quality. Corporate governance strengthens the effect of AI adoption on auditor confidence, and both efficiency and decision quality enhance professional reputation. Findings underscore the need for strong leadership, innovation-friendly cultures, and robust governance to maximize the benefits of AI in emerging market auditing.