Digital Transformation and Big Data Analytics in Enhancing Audit Effectiveness

Abstract

The development of information technology has brought significant changes to accounting and auditing practices in the digital era. This transformation marks a shift from manual reporting systems to software-based systems integrated with Big Data Analytics. The application of Big Data Analytics enables auditors to process large volumes of data, analyze transactions in real time, and identify anomalies to detect potential fraud. Big data analytics expands the audit scope by comprehensively combining financial and non-financial data. However, challenges such as data security risks, limited digital skills among auditors, and regulatory uncertainties remain major obstacles. This study employs a narrative approach by reviewing recent literature from the past five years that focuses on the impact of technology on audit efficiency and accuracy. The findings indicate that the effectiveness of digital auditing highly depends on the readiness of technological infrastructure, the competence of human resources, and strong data governance. Digital transformation strengthens the ability of auditors to enhance audit quality, although its success requires integrated strategies in capacity building, technology adoption, and regulatory support.