Digital auditing has transformed public sector auditing, emphasizing the need for advanced competencies to ensure audit judgment quality. This paper examines the role of digital audit competency and digital efficacy in strengthening the judgment capabilities of Malaysia's public sector auditors. As governments adopt digital technologies to promote transparency and accountability, the auditing profession faces increasing demands to adapt to sophisticated tools such as artificial intelligence, big data analytics, and blockchain. However, gaps in digital proficiency and confidence hinder the full potential of these technologies in public sector auditing. This paper critically reviews the development of digital auditing in the Malaysia public sector and evaluates how digital audit competencies impact audit judgment quality. The paper also proposes strategies to strengthen digital competencies. These strategies aim to enhance the effectiveness of public sector audits, foster transparency, and build trust in governmental financial oversight. This study contributes to the theoretical understanding of digital transformation in public sector auditing and offers practical insights for auditors, policymakers, and researchers.
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