Abstract
The integration of digital tools is transforming auditing processes, making them effective and efficient. These tools fast-track repetitive tasks, allowing auditors to focus on critical activities such as strategic analysis and decision-making. This research study aimed to determine the effect of digital transformation on auditing processes. Digital tools are not limited to specific industries, as many industries rely on these tools for their processes.
The study conducted a deep literature review to obtain valuable insights into the research topic, which included the digitalization of auditing processes, the use of computer-assisted audit tools (CAATs), automation within the audit space, and the audit value chain. A qualitative research approach was adopted to give the researcher an overview of how people perceive digital transformation in auditing. Data collection for this study was tied to soft systems methodology (SSM) and was in line with the SSM principles. Data was collected through a series of participatory workshops with audit professionals to capture their experiences and perceptions.
In those participatory workshops, a rich picture tool was used to allow participants to graphically represent their experiences of the integration of auditing processes with digital tools. The selected participants included professionals at various levels of seniority, enabling the capture of a wide range of insights and experiences within the auditing field. The data collected was transcribed and subjected to a line-by-line analysis of the transcriptions. In addition, a visual analysis of the photographs of the rich pictures was conducted. Dedoose analysis software was employed to generate codes from the transcriptions and notes, and an open coding technique was used to identify themes and subthemes. This specific approach allowed for participants’ perspectives to guide the identification of patterns. A consolidated view of the key themes was derived, showing how digital transformation has changed the audit landscape.
The study findings led to the development of a framework designed to guide audit firms and organisations in digitally transforming auditing processes. This framework was developed in alignment with two primary research objectives: to determine how the adoption of digital tools and technologies impacts auditing processes, and to assess how automation improves the effectiveness and efficiency of these processes. One key recommendation that emerged from this study is the need to focus on deploying empirical approaches for the measurement of how digital audit tools affect operational outcomes, as doing so would indicate how effective these tools are.