Significance of Transaction Audit in the Context of Digitalized Auditing Processes

Abstract

Accounting legislation is constantly adapting to meet the evolving needs of society. This evolution, inherent in legal norms, eventually manifests itself to meet societal or stakeholder demands. Accounting auditing, an integral facet of accounting law, endeavors to keep pace with the swift transformations within the accounting profession, striving to expedite its own evolution. The rapid advancement of digitalization has prompted a shift in accounting practices from traditional document-based to transaction-oriented methodologies, consequently leading to a shift in auditing practices from document-based to digital-driven approaches. This acceleration in the auditing sphere is anticipated to outpace previous transformations in the imminent years. Unlike prior evolutions largely propelled by internal dynamics of the profession, this impending transformation is primarily steered by external factors, compelling accounting law to recalibrate in response. This paper aims to explore this ongoing transformation and scrutinize the anticipated shifts in accounting auditing attributable to digitalization in the field.