Role of fintech in financial reporting and audit fraud prevention and safeguarding equity investment

Abstract

The aim of this paper is to discover the audit-related causes of financial scandals and suggest how emerging technologies can offer solutions thereto. Specifically, this paper seeks to look at the facilitators of financial statements fraud and explain unique Fintech advancements that will make a contribution in financial information reliability in case of equity investments. The study makes use of the case studies of financial frauds to document the evidence of audit-associated issues in historical financial scandals. A complete and interdisciplinary literature evaluation at the intersection of business, accounting, and engineering, gives a basis to endorse technology advancements that can solve diagnosed issues in accounting and auditing. The findings of the study depicts that Blockchain, Internet of Things, Smart Contracts and Artificial Intelligence solutions have distinct functionality and can effectively clear up numerous financial reporting and audit-associated problems. Jointly, they have got a sturdy capability to enhance the reliability of the information in financial statements and commonly exchange how companies operate. This implied that the proposed and defined technology advancements must be of interest to all publicly listed companies and investors, as they can assist in safeguarding equity investments, as a result construct buyers’ will have trust towards the enterprise. Aside from implications for capital markets individuals, the findings of the study can materially benefit diverse stakeholder groups, the broader enterprise surroundings, and the financial system. Given the latest generation advancements in technology, the findings of the study provide insights into how the position of an external auditor would possibly evolve in the future.