The Transformative Impact of Digitalization on Audit Quality and Efficiency: A Strategic Analysis for Accounting Firms – Sept 2025

Author: Sanap R. K.*
K.V. N. Naik Shikshan Prasarak Sanstha’s, Arts, Commerce & Science College, Nashik

Abstract:

This report provides a comprehensive analysis of how digital transformation is fundamentally reshaping the audit profession. It moves beyond a simple overview of technology to explore the profound implications for audit quality and efficiency, the new risks and challenges that have emerged, and the imperative for firms to evolve the role of the modern auditor. The analysis reveals that while technologies like artificial intelligence (AI), Robotic Process Automation (RPA), and data analytics offer unprecedented gains in productivity and accuracy, they also introduce a new class of technical, ethical, and strategic risks. Success in this new era hinges not just on technology adoption but on a strategic “human-in-the-loop” approach, continuous talent development, and a firm-wide commitment to data governance and ethical AI. The report concludes with a strategic roadmap for firms, emphasizing the necessity of a phased, risk-based approach to secure a competitive advantage in a rapidly evolving market.

Keywords: Digital, Audit, Efficiency, Quality, Accounting and Technology.

DOI: 10.65282/sjrl.vo.1.issue.02.014