Digital Audit Research Articles

Digital Audit Guidance to Reduce Program and Finance Manipulation Report with Educational Management System for Administration Affair

Digital Audit Guidance to Reduce Program and Finance Manipulation Report with Educational Management System for Administration Affair

Factors influencing readiness to implement digital audit among internal auditors of the Malaysian public sector

PurposeThis paper aims to examine the factors that influence the readiness of public sector internal auditors of the Accountant General’s Department (AGD) in Malaysia to implement digital audit.Design/methodology/approachThis study used an online questionnaire survey that was administered to a population of 124 internal auditors of the AGD, Malaysia. The readiness was measured in two ways: change commitment (CCOM) and change efficacy (CEFF), whereas the predictors of readiness encompass three factors: change valence, task knowledge and task availability. A partial least squares modelling using the SmartPLS 4 version was used to test the hypotheses.FindingsThe results reveal that change valence, task knowledge and task availability are positively significant factors influencing the CCOM of the AGD to implement digital audit. However, change valence is the only factor influencing CEFF.Originality/valueThis study offers useful empirical evidence on determinants of readiness to implement digital audit among internal auditors in the public sector, which is crucial towards supporting the Malaysian Government’s digital transformation agenda.

Directions of digitalization of going concern audit – a prerequisite for its efficiency increase

Introduction. In modern conditions, digital transformation is the main means of improving business performance. Constant competition and changing market conditions force business entities to resort to new ways of increasing the efficiency of business processes and adapting to new conditions. Digital technologies have great potential in solving this problem. As the country’s economy continues its path of digital transformation, the interest of audit firms in the development and implementation of digital technologies in their activities is growing. This determines the relevance of this study. Purpose. The article aims to investigate and outline the main areas of digitization of the going concern audit of enterprises. Methods. In the process of writing the article, the authors used general scientific methods of scientific research. The dialectical method of scientific knowledge of economic phenomena and processes became the basis of the study of the concept of «audit digitalization». Such methods as grouping, comparison and specification made it possible to assess the directions of digitization of the going concern audit of enterprises. The abstract-logical method was used when presenting the problems of audit digitalization. The use of a graphic method ensured the visibility of statistical data and research results. Conclusions. The concept of «audit digitization» is revealed. The reasons for the transition to digital technologies in all spheres of the economy, including audit. The directions of digitization of the going concern audit of enterprises are described. The basic problems and risks associated with the digital audit process are presented. Prospective directions for the further development of audit activities are considered, among which continuous and virtual audits are key. The results of the study indicate that the active digital transformation of the economy affects all spheres of activity, and the auditing sphere is no exception. Discussion. Despite the significant volume of scientific research, which is related to the analysis of the impact of digitalization on audit activity and the identification of promising directions of digital transformation of audit, it is important to search for the restraining factors of the digitalization of the going concern audit. These questions can be the object of new scientific research.

The Role of Digital Auditing in Enhancing the Efficiency ‎of Detecting Error and Financial Fraud

The Role of Digital Auditing in Enhancing the Efficiency ‎of Detecting Error and Financial Fraud

Современные тенденции цифровизации в банковской сфере

The article examines the current trends in the digitalization of the banking sector, analyzing the impact of new technologies on banking services and operations, which is an integral part of the modern world and is actively developing in Russia. The article is aimed at researching the digital maturity of bank-ing organizations and their readiness for global changes within the framework of digital transformation. The author draws attention to several key aspects, such as fast payment systems (SBPs), payment stickers, Buy Now Pay Later (BNPL) and the introduction of the Digital Ruble. The relevance of the study is to identify the importance of digital technologies to improve the efficiency and convenience of financial transactions, and considers their potential and possible risks. The methodological base of the study is based on the analysis of data from information and analytical reviews of the SDI360 digital audit agency together with experts from partner companies. In general, the article provides an over-view of current trends in digitalization in the banking sector and emphasizes their importance for the development of the industry. The practical significance of this article lies in the fact that it will help banking professionals and managers to better understand current trends in digitalization and their impact on the banking sector. This will allow them to make more informed decisions when developing and implementing digital strategies, as well as improve the quality of services and operations provided. The scientific significance of the article lies in the fact that it provides an analysis of current trends in digi-talization in the banking sector based on current data and research. This can be useful for scientists, students and anyone interested in the development of the banking industry in the context of the digital economy. The article can also serve as a basis for further research in this area. Thus, the article on current trends in digitalization in the banking sector has both practical and theoretical significance, contributing to the development of the banking industry and scientific understanding of digital transformation in this area.

Technique of Government Digital Auditing

The actions that must be taken to consider government digital auditing, given that we all function in the conditions of the “World Wide Web” (www). The use of www reality is essential for the functioning of government digital auditing. It enables the search for ways to solve the challenges of the rational use of budgetary resources and to optimise budgetary relations in a government. This article is about the benefits, challenges and technique of government digital auditing that intended to safeguard public interest and preserve government assets. The goal of this article is to provide a clear and concise representation of the main blocks of the technique for Government Digital Auditing. This technique is based on Author’s insights and practical experience as a government auditor, Chief of accountants, Professor of Accounting and Auditing.

Benefits and Challenges of Digital Audit Implementation in the Malaysian Public Sector: Evidence from the Accountant General's Department of Malaysia

Purpose: The current study aims to investigate the important benefits or advantages of digital audit implementation perceived by the internal auditors of the Accountant General’s Department of Malaysia (AGD), and examine the significant challenges faced by the AGD auditors in implementing digital audit. Design/ Methodology/ Approach: A focus group discussion was conducted with AGD officers involved in digital audit implementation and a questionnaire survey was distributed to the AGD auditors to achieve the research objectives. All 124 auditors responded and returned the completed questionnaire. Thematic analysis was performed on the transcription of the focus group discussion while descriptive statistics of mean scores, standard deviations, and mean score ranking were utilised to analyse the questionnaire data. Findings: The top five ranked benefits of digital audit implementation perceived by the respondents were improving the quality of audit report, increasing the efficiency of audit, assisting auditors in identifying material misstatements, improving the quality of the audit processes and enhancing audit effectiveness. The top three challenges were requiring additional education and training to acquire the necessary digital skills, high implementation costs and the risk of data security (leakage) and confidentiality. Originality/ Value: The present study contributes to the existing limited empirical evidence on the fundamental advantages and challenges of digital audit implementation despite various conceptual discussions on the two implementation aspects.

Benefits and Challenges of Digital Audit Implementation in the Malaysian Public Sector: Evidence from the Accountant General's Department of Malaysia

Benefits and Challenges of Digital Audit Implementation in the Malaysian Public Sector: Evidence from the Accountant General's Department of Malaysia

The Mediation Effect of Audit Assessment on Audit Competency and Digital Audit to Audit Work Performance Effectiveness

The relationship between auditor competency and the use of digital audit has been recognized as a potential factor that could enhance audit evaluation and enhance auditor performance. This study examines the direct impact of audit competency and digital audit variables on the efficiency of auditor work performance. It also explores the role of audit assessment as a mediator in these connections. The data used in this study is obtained from external auditors. A survey was conducted in Malaysia to determine the direct impact of audit competence and digital audit on the efficiency of audit work carried out by the external auditor. Based on the findings, it appears that increasing the efficiency and effectiveness of auditors' work performance was largely dependent on their competency as well as their usage of modern digital audits. Further investigation reveals the impact of audit competency and digital audit on audit assessment, which is a necessary process for enhancing the performance effectiveness of the external auditor. This research enhances our understanding of audit assessment as an essential tool for evaluating audit proficiency and the auditor's competency and effective utilization of digital audit in evaluating the auditor's work performance.

Prospects for the development of digital audit in the Republic of Kazakhstan in the context of the transition to the digital economy.

The article discusses the development of digital audit in the Republic of Kazakhstan, the implementation of which is designed to ensure the transparency of business processes that are most susceptible to corruption. The purpose of the research is to study promising directions for the development of digitalization in auditing activities. The author has established the fact that the economic security of the country and its further development depend on this. The solution to the problems posed in the work was carried out on the basis of the application of general scientific research methods within the framework of comparative, logical and statistical analysis of structure and dynamics, graphic interpretation of information, etc. The practical significance of the study is confirmed by the definition of a set of practical recommendations for improving digital audit. The work provides data that can complement existing approaches to conducting digital audits and identify its role at the present stage. Data obtained in the process of studying scientific literature and regulatory and legal sources indicate that in modern conditions there are problems that acutely affect the process of digitalization of the economy of Kazakhstan and require immediate solutions. Among them is the improvement of the country’s economic policy in the field of development of the audit services market. The recommendations proposed by the author of the article are intended to help in resolving issues related to conducting a digital audit, as well as identifying new approaches to theoretical and applied research in the field of digitalization of business processes and can be useful to specialists in accounting and auditing, students, masters, doctoral students.

Digital engineering audit management strategy based on machine learning combined with wireless communication network

In response to the evolving landscape of the modern era, the requirements for engineering audit have undergone significant changes. To achieve efficient audit tasks and obtain accurate and reliable results, the integration of machine learning and wireless network technology has become essential, leading to the emergence of digital and information-based audit modes. This paper focuses on the development of a digital audit system that combines engineering audit management fusion with machine learning and wireless network technology. Such an approach reflects the dynamic shift in internal audit functions and objectives, providing clear guidelines for the future of digital audit management. By harnessing the power of machine learning and wireless networks, the digital audit system effectively addresses challenges associated with data management, sharing, exchange, and security during the audit process. Through seamless integration, it enables comprehensive electronic and digital management of internal and audit business processes. This research explores the platform’s functionalities and its potential application, using actual audit data for analysis. The proposed digital audit system showcases superior real-time data querying performance, heightened accuracy in checks, and enhanced retrieval capabilities. The simulation results validate the system’s efficacy, highlighting its ability to deliver true and dependable audit outcomes. By embracing digital transformation, the engineering audit field can harness the potential of cutting-edge technologies, thus paving the way for a more efficient, reliable, and future-ready approach to audit management.

Empirircal investigation into y-the integration of cloud-based artificial intelligence in auditing

Purpose- The increasing prevalence of cloud computing and the rapid proliferation of artificial intelligence technologies have opened up novel prospects for enhancing auditing methodologies. This research aims to scrutinize the consequences of incorporating cloud-based artificial intelligence (CBAI) in auditing, focusing on its implications for audit clients, auditors, and the overall audit process. Methodology- A method of quantitative research was utilized in this study, where 322 questionnaires were distributed to external auditors in Jordan. The objective was to collect information on the potential enhancements brought about by cloud-based artificial intelligence in the auditing field. The study employed convenience random sampling, a technique involving the collection of data from readily available members of the population, which, in this context, refers to external audit offices in Jordan. Jordan has a total of 454 audit offices with a diverse range of auditors, including partner-owner auditors, assistant auditors, and certified auditors. The analysis of the gathered data was conducted using SmartPLS software, which employs structural equation modeling (SEM). Findings- The study's outcomes reveal the potential for cost savings associated with the adoption of CBAI, as well as the streamlining of audit procedures and the enhancement of overall efficiency. Moreover, the research observes the transformation of auditors' roles, with a shift towards a greater focus on analytical and advisory responsibilities, departing from traditional manual tasks. These findings underscore the potential advantages for audit clients, auditors, and the audit process, underscoring the significance of embracing these technologies to advance the auditing profession in the digital age. Conclusion- The study investigates how CBAI influences audit quality and efficiency through a thorough examination of data sourced from a sample of external auditors operating within the context of Jordan. Additionally, it delves into the significant advancements that CBAI can introduce to the auditing field, encompassing its potential for data storage and analysis, the improvement of communication between auditors and clients, the adoption of innovative audit techniques, and the shift from manual to digital auditing methodologies. Keywords: Cloud-based artificial intelligence, Auditing, Auditors, Cloud computing, Artificial Intelligence, Audit quality. JEL Codes: O30, O33, O35

Developing Auditor Competencies through Continuous Training and Education

This study examines the development of auditor competencies through continuous training and education, focusing on the integration of digital literacy and emotional intelligence into training programs. It employs a synthesis of literature from diverse perspectives to explore theoretical and managerial implications. Theoretical implications highlight the need to expand traditional notions of auditor competence to include soft skills and behavioral competencies, emphasizing the importance of emotional intelligence in auditor-client relationships and digital literacy in navigating digital audit environments. Organizational factors influencing competency development are also identified, with a focus on the role of leadership styles, organizational culture, and learning climate. Managerial implications suggest the recalibration of training programs to prioritize holistic competency development, including digital literacy and emotional intelligence. Organizational leaders are urged to champion digital transformation initiatives and foster a culture of continuous learning and innovation. Mentorship programs and communities of practice are proposed as means to facilitate knowledge sharing and professional development. Overall, this study provides insights for both theoretical understanding and managerial practice in enhancing auditor competencies to meet the challenges of the contemporary business environment.

The Preliminary Analysis of Pathways and Technologies in Digital Audit Transformation

The Preliminary Analysis of Pathways and Technologies in Digital Audit Transformation

AUDIT OF CAPITAL IN THE CONDITION OF ELECTRONIC ACCOUNTING

The purpose of the research is to investigate the issues of digital audit of capital by using the information reflected in electronic accounting registers in commercial enterprises and to put forward suggestions for improving the audit based on this. The methodology of the research is based on the relevant provisions of the existing normative-legal materials on the initial formation and development of capital in commercial enterprises, it consists of examining the current situation in the field of its audit and developing a methodology for organizing a digital audit of capital based on this. The practical importance of the research is that it is possible to realize the possibilities of conducting a digital audit of the capital in the conditions where electronic accounting is applied in the enterprise, the implementation of which will create conditions for the improvement of the audit according to modern standards. The results of the research – in the conditions where electronic accounting is applied in the enterprise, an electronic internal audit subsystem can be created, which can be a real contribution to the digitalization of both internal and external audit. The existence of such an information system creates favorable conditions for the internal auditor to regularly monitor the correct reflection of information in capital accounting and financial reports, and in cases where an external audit is conducted, important information is provided to him by the internal audit service. The originality and scientific novelty of the research consists of making proposals on the methodology of organizing and conducting the digital audit of capital.

Bibliometric Analysis and Review of Digital Audit Practices in the Public Sector of Different Countries

Purpose: The objectives of this paper are two-fold: first, it presents a bibliometric study on digital audit in the public sector of different countries; and Second, it provides review of prior studies on digital audit implementation by governments in various countries. Design/ Methodology/ Approach: There are two parts in the present study, and both use secondary data. The first part is a bibliometric study of past literature on digital audit in the public sector which was carried out to provide an overview of trend of publications over the last 30 years, citation analysis in terms of top cited journals and articles, as well as author analysis which covers most active single author and author with co-authorship and based on the country of the authors. The second part of the paper uses the content analysis technique on prior literature to extract and compile information on digital audit practices by the public sector of various countries in terms of the year of implementation, current status of implementation, and modules and the software used. Findings: The results of the first of the study indicate the increasing trend of publications on digital audit in the public sector which are authored by researchers from many countries. This implies the current trend of digital audit movement by governments around the world. For the second part, the review on digital audit practices of governments in different countries reveals several European countries such as Norway, Ukraine and Germany are championing digital audit in the public sector although none of the countries has full-fledged implementation. Most countries started with taxation audit, and are now having labs or incubators for full-fledged digital audit experimentation in the public sector. Originality/ Value: The findings of this paper are important due to the followings: (1) it offers insightful evidence into the current development and direction of digital audit research, which ultimately calls for more research efforts on digital audit in the public sector; (2) the information on digital audit practices by several European countries provides essential guidance to the governments of other countries including Malaysia to better prepare for its successful more advanced digital audit implementation journey. Keywords: Digital audit, public sector, bibliometric analysis, digital transformation.

The Effect of Regulatory Compliance and Digital Audit Adoption on Auditor Performance and Financial Reporting Accuracy in Indonesia

The financial reporting landscape in Indonesia is marked by a complex interplay of regulatory compliance and the adoption of digital audit technologies. This study conducted a quantitative analysis to investigate the relationships between regulatory compliance, digital audit adoption, auditor performance, and financial reporting accuracy. The results revealed a robust positive association between regulatory compliance and both auditor performance and financial reporting accuracy. Regulatory compliance emerged as a vital driver of effective auditing and higher financial reporting accuracy in the Indonesian context. In contrast, digital audit adoption, while promising, did not exhibit a significant impact on auditor performance or financial reporting accuracy. The findings underline the importance of regulatory adherence in fostering financial transparency and accountability, and they offer valuable insights for auditors, organizations, and regulatory bodies in Indonesia.

Shift to Digital Audit: A Study Investigating the Benefits and Challenges of Digitalization on the Audit Profession

This study intends to evaluate the perceived benefits and challenges that these technologies offer in the context of digitalization, to one of the most suitable professions for the particular procedure; the audit profession. A qualitative study was conducted to gain a better grasp of the implications of digitalization on audit tools in the audit profession. This is accomplished by conducting ten (10) semi-structured interviews with professional auditors, emphasizing interpretation. It has been found that this study backs up some of the conclusions of prior research on the issue of digital auditing. Conclusively, the empirical findings of this study support the assumption that auditors believe digitalization will become even more popular in the future and that it will not result in job losses, as prior studies have suggested.

Towards inclusive PE for science granting councils in Sub-Saharan Africa: challenges and opportunities

Inclusive public engagement (PE), an approach that recognizes the plurality of gender identities, is crucial for science reach, uptake, and impact. This study explored the PE activities of 15 science granting councils in Sub-Saharan Africa to identify existing practices, their strengths, and barriers to inclusive PE practices. Key informant interviews were used to elicit data, with additional data collected through a digital audit of the 15 councils. The study established that SGC activities demonstrate relatively good alignment with their PE mandate. Initiatives have been developed and implemented, although there are areas that need strengthening. Some of the key areas that need strengthening are the lack of commitment to multilingual knowledge transfer using local languages; the explicit inclusion of women in policies and programs, the diversification of engagement platforms and tools to address the urban-rural divide and the digital divide.

Methodology of Digital Transformation Practices of Accounting Firm

For accounting firms, digital auditing is an important task which helps them to examine financial data and ensure the accuracy of the data on the reports. However, which data analysis techniques should be adopted to improve the efficiency and accuracy of digital audit is an important issue. This study aims to explore the feasibility and practical applications of using data analytics techniques in digital auditing; These techniques can help auditors to systematically check, test and evaluate the accuracy, completeness, reliability and effectiveness of corporate information systems and data according to the systematic procedure. The DIKW model is a model that establishes a connection between knowledge and wisdom based on the framework of knowledge management, using the traditional concept of "data-information-knowledge-wisdom". This study will start from the theoretical level to explore the practical research of digital auditing combined with the DIKW model using data models, visualization analysis, machine learning, and related technical and practical problems. Effective solutions are proposed for each situation for future development. The implementation of this research is expected to help auditors choose appropriate data analysis techniques for digital auditing to ensure data accuracy and reliability.