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Does damage adjustment via difficulty selection, affect enemy dice rolls?

I've been playing on Novice and I've been noticing that enemies often miss and I often crit or deal massive damage to them. I'm assuming that by reducing enemy damage by 1/2 or 2/3's it is actually manipulating the dice rolls instead of applying a flat damage reduction after the dice rolls have been performed (With a minimum 1 damage guaranteed).

It makes the game way, waay easier then expected. I was expecting dice rolls to be the same as on harder difficulties, just that the final outcome is adjusted after the dice rolls.

Or maybe, like various other things in this game, I've understood what's happening incorrectly. It just feels as though Novice difficulty is doing more then what the difficulty explanation suggests.
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