THE IMPACT OF DIGITALIZATION ON THE AUDIT PROFESSION: A REVIEW OF TURKISH INDEPENDENT AUDIT FIRMS

Abstract

Purpose - The aim of exploratory study is to increase the understanding of the effects digitalization has on the tools and working methods of the audit profession. Methodology - Websites of 235 audit firms authorized by POA (Public Oversight, Accounting and Auditing Standards Authority) were examined. In addition, transparency reports of 64 companies authorized for Public Interest Entity (PIE) Audit were investigated as well. The status of the services provided by the audit companies after the technological developments were analyzed. In addition, infrastructure and continuous education investments of audit firms related to digitalization have been determined. Findings- It has been found that almost all audit companies provide services for independent audit and tax audit. (Respectively 95% and 85%). These are followed by financial services and internal audit issues. (Respectively 61% and 45%). Only Big Four invest the necessary infrastructure and human resources in addition to providing services in these matters. In spite of all these technological developments, only 24 companies provide education to their employees for IT / IT audits. Only Big Four provide education for digital technologies to their employees. Conclusion- As a result, with the effect of digitalization, Information technologies have gained importance. But the audit firms have not yet made the necessary investment in these areas. 90% of audit firms do not provide services in these areas and do not make infrastructure and human resources investments.

Keywords

• Digitalization,information technologies,accounting,audit,auditing firms

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