Development of Auditing Procedures in the Digital Economy

Abstract

The purpose of this study is to substantiate the transformation of auditing procedures in the digital economy and to identify ways to enhance their effectiveness under the influence of digital technologies. It is established that the accelerated digitalization of business processes, the automation of financial accounting, and the growth in data volumes fundamentally transform the audit environment. This leads to the emergence of new challenges related to risk identification and the assurance of the reliability of financial information.

The methodological framework of the study is based on general scientific and specialized methods of inquiry, including analysis and synthesis, induction and deduction, and systemic and structural functional approaches. A comparative analysis of scholarly publications and professional approaches to the organization of auditing activities in a digital environment is conducted. The method of generalization is applied to systematize the shortcomings of traditional auditing, while logical modeling is used to assess the potential for implementing digital tools in auditing procedures.

A mismatch between traditional auditing approaches and the requirements of the digital economy is identified, driven by limited capabilities for processing large scale data sets, insufficient adaptation to automated accounting systems, and the growth of cyber risks. It is demonstrated that the application of big data analytics, artificial intelligence capabilities, blockchain technologies, robotic process automation, and cloud services creates the foundation necessary for the transition to continuous auditing, the expansion of analytical procedures, and the improvement of the quality of professional judgments. It is determined that digital platforms contribute to minimizing audit risk, increasing the transparency of audit engagements, and ensuring the timely detection of anomalies in financial information.

It is substantiated that the transformation of auditing procedures in the digital economy requires comprehensive modernization of audit methodology, the development of auditors’ professional competencies in line with digital transformations, and the improvement of the regulatory framework in the context of technological innovation. The practical significance of the study lies in the possibility of applying its results to modernize audit methodology and to develop strategies for the digital transformation of auditing activities.