From Traditional Auditing to Information Technology Auditing: A Paradigm Shift in Practices

Abstract

The digitalization of information systems has led to fundamental shifts in auditing practices, replacing traditional manual processes with advanced digital auditing methodologies. This transformation has been accelerated by innovations in cloud technology, enhancing the efficiency and effectiveness of auditing operations. Concurrently, the evolution from document-based to transaction-based audits has redefined the auditing landscape, emphasizing real-time transaction monitoring over static record documentation. This paper explores these transformative trends within both internal and external auditing, with a specific focus on IT audit practices. It provides an in-depth analysis of the distinct objectives and methodologies inherent to IT audits, illustrating their adaptation to the digital era. The study examines the implications of these changes on audit processes, highlighting the paradigm shift towards more dynamic and data-driven auditing approaches.  By synthesizing theoretical insights with practical implications, this research contributes to a comprehensive understanding of how digitalization is reshaping auditing practices. It underscores the importance of integrating advanced technologies such as AI, blockchain, and IoT in audit frameworks to enhance accuracy, reliability, and compliance in financial reporting.