The Relationship Between Regulatory Oversight and the Long-Term Sustainability of the Audit

Abstract

The audit profession stands at a critical juncture, facing unprecedented challenges from technological disruption, evolving stakeholder expectations, and
increasing regulatory scrutiny. The fundamental question of how regulatory
oversight influences the long-term sustainability of this vital profession remains
inadequately addressed in contemporary literature. While numerous studies
have examined the relationship between regulation and audit quality in the
short term, few have explored the systemic implications for professional sustainability over extended horizons. This research gap is particularly concerning
given the profession’s essential role in maintaining capital market integrity and
public trust.
Traditional approaches to audit regulation have often adopted a reductionist perspective, focusing on discrete compliance metrics without considering
the complex adaptive nature of the audit ecosystem. The work of Ahmad et
al. (2021) on coordinated approaches to fraud investigation represents an important step toward understanding integrated professional systems, yet their
framework does not extend to modeling the dynamic sustainability implications
of regulatory interventions. Our research addresses this limitation by developing
a comprehensive computational model that captures the nonlinear relationships
between regulatory mechanisms and professional vitality