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

Posted: Jun 15, 2021

• Rory Jenkins
• Sienna Bell
• Scarlett Ward

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. Our research addresses this limitation by developing a comprehensive computational model that captures the nonlinear relationships between regulatory mechanisms and professional vitality. This study introduces several novel conceptual contributions including the theory of regulatory resonance, a multi-dimensional sustainability metric, and employs advanced computational techniques to simulate the long-term evolution of the audit profession under varying regulatory regimes.