Opportunities and Challenges of Digital Audits and Compliance: Adoption of International Financial Reporting Standards (IFRS) in the Digital Age

2. Chapter Objectives And The Roadmap

In this part, we give a synthetic presentation of the goals and the argument line of the chapter. Our aim is to make a deep dive into digital transformation within the domains of auditing and compliance, related to the incorporation of modern technologies and relevant aspects of the process. We will next examine the consequences of digital transformation on auditing and compliance and present proposed measures. Then, we will give our own conclusions and recommendations for those organizations that are planning to start this undertaking. This chapter is guided by several goals. It starts by examining how digitalization is affecting auditing and compliance, how these procedures are changing fundamentally as a result, and just how well new technologies have been integrated into audit processes and compliance management. The importance of IFRS on a worldwide scale, as well as the benefits and drawbacks of implementing IFRS in the rapidly changing digital environment, are next covered in the chapter. This chapter has a focus on modern technologies and approaches used for auditing and compliance; the emphasis is on the use of automation for analysis of data, risk evaluation, and compliance monitoring. Zhang et al. (2020) reviewed modern advancements in big data and machine learning in accounting, presenting taxonomies of cognitive technologies applied today and noting the AI-based applications. Focusing on current issues like data security, privacy, and ethical issues, the chapter assesses the challenges that come along with the deployment of new technologies in audit. It evaluates digital training initiatives for auditors as well, recognizing changing skills demand and education needs for digital auditors in the technology age.