Evolving trends in corporate auditing: A systematic review of practices and regulations in the United States

Abstract

This systematic review delves into the dynamic landscape of corporate auditing in the United States, examining the historical underpinnings, current practices, and regulatory frameworks that shape this critical aspect of corporate governance. Corporate auditing stands as a linchpin in fostering financial transparency, ensuring accountability, and bolstering investor confidence. Over time, auditing practices have evolved in response to the intricacies of modern business, technological advancements, and the ever-changing regulatory environment. The review begins with an exploration of the importance of corporate auditing, emphasizing its crucial role in maintaining financial integrity and safeguarding the interests of stakeholders. The evolution of auditing practices unfolds as a narrative of adaptation and innovation, reflecting the need for auditors to navigate complex economic landscapes. Traditional methodologies, long considered the foundation of assurance services, are scrutinized in the context of their historical development and contemporary relevance. A significant focus is dedicated to emerging trends in corporate auditing, with a particular emphasis on technology-driven transformations. The integration of artificial intelligence, machine learning, and data analytics reshapes the audit landscape, providing auditors with powerful tools to enhance efficiency and accuracy. Additionally, the review explores the advent of remote auditing practices, examining the impact of digitalization on audit methodologies, along with the challenges and opportunities associated with this paradigm shift. Environmental, Social, and Governance (ESG) considerations emerge as a pivotal aspect of contemporary corporate audits. The review investigates the growing importance of ESG factors, the incorporation of these considerations into auditing practices, and the broader implications for corporate accountability. Regulatory responses to these evolving trends are analyzed, encompassing updates from the Securities and Exchange Commission (SEC) and international influences on U.S. auditing standards. The abstract concludes by offering a forward-looking perspective, anticipating future developments in corporate auditing and highlighting the delicate balance between tradition and innovation in this critical domain of corporate governance.