The Role of Digital Transformation in Financial Audit and Assurance: Leveraging AI and Blockchain for Enhanced Transparency and Accuracy

Abstract

Digital transformation has been widely emphasized for its significant role in enhancing the effectiveness and efficiency of financial audit and assurance. Technologies such as artificial intelligence and blockchain have the potential to further support and enhance the financial audit and assurance process by improving transparency and accuracy. Such technologies have replaced and expanded the traditional audit doctrine, leading to the reconsideration of established ethical guidelines and professional policing. This essay addresses these issues in depth. Its findings and observations furnish new insights valuable to those interested in the accountability regime, financial reporting, or the larger issue of good governance. In this context, the role of auditors has evolved to encompass the analysis of vast volumes of records and qualitative factors, starting from financial records to non-financial qualitative factors. The impact of digital technologies on traditional audit practices is a chief concern for both businesses and professional audit associations. New technologies in the accounting environment are encouraging the development of fast and efficient audit processes. The rapid rate at which information and communication technologies are developing is expected to provide an efficient tool for performing audit processes. Advances in processes initiated through such means save both cost and time, improve the precision of accounting reports, and form a secure link between accounting professionals and their clients. Evolving digital technologies have a significant effect on auditors, whereby the capacity to develop strategies that confront digital technologies constitutes a necessity in the professional audit profession.