Challenges of using digital technologies in audit

Vuković, Bojana; Tica, Teodora; Jakšić, Dejan

doi:10.5937/aneksub2300014v

Cited by 7 publications

(5 citation statements)

References 38 publications

(43 reference statements)

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“…In the Indonesian context, the adoption of digital audit methods faces unique challenges and opportunities [25], [26]. The digitalization of audit activities can help address issues such as difficulties in maintaining audit indicator data, manual evidence keeping, and long report generation processes [27]. Additionally, digital transformation can improve audit efficiency, reduce audit risk, and save audit costs.…”

Section: Performancementioning

confidence: 99%

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

Judijanto,

Nurdiani,

Ningsih

et al. 2023

account. Fin.

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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.

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Section: Performancementioning

confidence: 99%

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

Judijanto,

Nurdiani,

Ningsih

et al. 2023

account. Fin.

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“…Every company must adapt to the changes in a digital environment. In the era of digital transformation, companies are increasingly aware of the importance of information technologies and are making structural changes to their businesses to accommodate them (Ljumović et al 2021;Raković et al, 2022;Vuković et al, 2023;Jevtić & Milovanović, 2023). In recent years, the emergence of digital currencies, non-fungible tokens (NFTs), and distributed ledger technology (DLT) have ushered in a paradigm shift in the financial landscape (Vuković et al, 2023;Leibowitz, 2016;Narayanan et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

“…In the era of digital transformation, companies are increasingly aware of the importance of information technologies and are making structural changes to their businesses to accommodate them (Ljumović et al 2021;Raković et al, 2022;Vuković et al, 2023;Jevtić & Milovanović, 2023). In recent years, the emergence of digital currencies, non-fungible tokens (NFTs), and distributed ledger technology (DLT) have ushered in a paradigm shift in the financial landscape (Vuković et al, 2023;Leibowitz, 2016;Narayanan et al, 2016). As these innovative technologies gain momentum, their implications extend far beyond their technological underpinnings, causing significant changes in accounting practices and investment strategies (Wu et al, 2019;Griffin, 2021;Chalmers et al, 2022;Wilson, Karg & Ghaderi, 2022;Guesmi et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…Against this backdrop, accounting and investment professionals face the challenge of navigating this evolving landscape while adhering to established standards and regulations. This study aims to bridge the gap between technological advancements and financial expertise, exploring the intersection of digital assets, accounting principles, and investment opportunities (Vuković et al, 2023). Taking a holistic approach to these technologies, we seek to help practitioners make informed decisions and take advantage of the potential of these technologies.…”

Section: Introductionmentioning

confidence: 99%

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Investing in blockchain technologies and digital assets: Accounting perspectives

Grujić,

Vojinović

2024

Anali Ekon fak Subotica

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This paper examines the complex landscape of digital currencies, non-fungible tokens (NFTs), and distributed ledger technology (DLT), focusing on their implications within the accounting and financial reporting sector. The surge in popularity of these assets has brought about reporting challenges and complexities. The lack of comprehensive accounting standards and the digitization of financial reporting processes further compound the situation. These challenges underscore the need to update accounting practices to align with the security and transparency offered by DLT. The study examines the International Financial Reporting Standards (IFRS) for digital currency reporting, analysing their implications and potential solutions for the accounting community. Central to this exploration is the question: How can the accounting sector navigate the multifaceted challenges and harness the multifarious opportunities that stem from digital currencies, NFTs, and DLT? Using a comprehensive research approach, including a literature review, empirical analysis, case studies, and comparative analysis, this study identifies strategies for managing the reporting complexities of digital assets. It also highlights the importance of collaborative dialogue between stakeholders and regulators to ensure consistency in an evolving landscape. This paper guides the accounting and investment sector in making informed decisions, fortified by a nuanced understanding of the evolving digital asset terrain.

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“…It is the AI algorithm's capacity to repeat a process, such as reviewing invoices or managing payments and inventory. According to (Vuković et al, 2023), through the use of pre-programmed algorithms, artificial intelligence enables the determination of extreme and negative values, extraordinarily high payments made during the offseason, double entries of suppliers, and invoices.…”

mentioning

confidence: 99%

Artificial intelligence application in auditing

Ivakhnenkov

2023

spne

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Artificial intelligence (AI) is a rapidly evolving technology that has gained prominence in various industries, including auditing. AI enhances the effectiveness of auditors by automating routine tasks and improving data analysis. Major audit companies, such as EY and PwC, have integrated AI into their practices to save time, increase accuracy, and provide better services to clients. AI applications in auditing include anomaly detection, fraud prevention, revenue analysis, risk assessment, and financial data analysis. Machine learning algorithms, a subset of AI, play a crucial role in analyzing large volumes of financial data, identifying patterns, and making predictions.AI implementation in auditing involves different stages, including pre-planning, planning, contracting, control risk assessment, and substantive tests. The benefits of AI for auditors and clients include improved data analysis, reduced human error, increased efficiency, and enhanced audit quality. However, the successful implementation of AI in auditing requires a clear understanding of its strengths, limitations, and challenges, as well as interdisciplinary collaboration and the development of specialized frameworks.AI has the potential to transform audit procedures, but human expertise and understanding are still essential for its proper use. It is important to recognize that while AI can automate certain tasks, it cannot replace auditors’ judgment and critical thinking skills.There are also challenges associated with AI implementation in auditing. These include the need for extensive data preparation, ensuring data quality and integrity, managing complex algorithms, and addressing regulatory and compliance issues. Furthermore, auditors must stay updated with the latest advancements in AI and continuously adapt their skills to leverage the technology effectively. JEL classification: M420

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Challenges of using digital technologies in audit

Cited by 7 publications

References 38 publications

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

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

Investing in blockchain technologies and digital assets: Accounting perspectives

Artificial intelligence application in auditing

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