Conceptualizing the Impact of Automation on Financial Auditing Efficiency in Emerging Economies
Year: 2024
Type: article
Abstract: The integration of automation in financial auditing is transforming the efficiency, accuracy, and reliability of audit processes, particularly in emerging economies. As these economies seek to enhance financial transparency and accountability, automation technologies such as artificial intelligence (AI), robotic process automation (RPA), blockchain, and big data analytics play a crucial role in modernizing auditing practices. This explores the conceptual framework of automation in financial auditing, emphasizing its potential to streamline operations, reduce human errors, and improve fraud detection. This highlights key benefits of automation, including increased speed in audit execution, enhanced regulatory compliance, and cost efficiency. Additionally, it addresses the challenges faced by emerging economies in adopting these technologies, such as limited technological infrastructure, high implementation costs, cybersecurity concerns, and resistance to change among auditors. The role of government policies, institutional support, and capacity-building initiatives in facilitating the adoption of automated auditing is also examined. Furthermore, this discusses future trends in financial auditing, including AI-driven predictive analytics, real-time transaction monitoring, and cloud-based auditing solutions. It also proposes strategies for overcoming existing barriers, such as fostering public-private partnerships, investing in workforce training, and establishing regulatory frameworks that support digital transformation in financial audits. Ultimately, this underscores the importance of leveraging automation to enhance financial auditing efficiency in emerging economies. By addressing technological, regulatory, and operational challenges, these economies can strengthen their financial oversight mechanisms and build investor confidence. The findings contribute to ongoing discussions on the digitalization of financial auditing and offer practical insights for policymakers, auditors, and financial institutions.
Language: English
Subfield: Industrial and Manufacturing Engineering
Field: Engineering
Domain: Physical Sciences
Open Access status: hybrid
OpenAlex ID: W4409565662