Digital Transformation in Audit: Implications for Audit Quality and Risk Assessment

Abstract

The rapid development of digital technology has brought about a fundamental change in the audit profession, where traditional practices focused on manual checks and limited sampling are beginning to be replaced by the use of advanced technology. Digital transformation through the use of artificial intelligence (AI), big data analytics, blockchain, and robotic process automation (RPA) allows auditors to analyze data thoroughly, detect anomalies faster, and improve accuracy in risk assessment. This study aims to examine how the adoption of digital technology affects the audit quality and the effectiveness of risk assessment in audited companies. Using an empirical approach to the data of public companies and public accounting firms, the results of the study show that digital transformation has a significant positive impact on audit quality through improved efficiency, transparency, and reliability of financial statements. However, the study also found that there are challenges that arise, such as cybersecurity risks, data integrity, the need for new skills for auditors, and potential threats to auditor independence. These findings make an important contribution to the academic literature as well as practical implications for regulators, auditors, and companies. Adaptive regulations, auditor training in digital competencies, and strengthening internal control systems are key in optimizing the benefits of digital transformation in auditing