The Effects of Digitalization on Auditing Fees
AUTHOR
Dr. Ahmed Eltweri
Assistant professor in Accounting- Liverpool John Moores University
ABSTRACT
The key duty of auditing is to determine if particular tasks are fulfilled efficiently, with rightness and under regulations and certain rules. In addition, an auditor should also have a perception of the general outlook of the financial statements by examining the fairness and correctness of the statements of the company’s financial position. Hence, nowadays the auditing profession is moving position from a conventional audit dependent on papers to a more digitized audit involving automated and paperless operations (Lombardi et al., 2014; Wagner, 2016). From this perspective, auditors across industries and public sectors, are working with regulators and standards-setter to integrate all means to reduce the auditing fees by bringing in technological tools as well as promoting digitalization as confirmed by various accounting bodies around the world. Digitalization technologies, such as big data & analytics, blockchain, Artificial intelligence (AI), and finally robotic process automation (RPA). These advancements would be beneficial to accounting firms so, to reduce audit fees by using these technologies to enhance the process of audit. Hence, these revelations of technologies, in particular, the blockchain integration into auditing would lead to a greater trust in sharing the auditing processes and tasks with others to reduce audit fees and other challenges to improve work efficiency (Li, et al., 2021).
KEYWORDS
Blockchain Technology, Accounting and Auditing Standards, Auditing profession, Auditing Fees
REFERENCES
BALIOS, D., 2021. The impact of Big Data on accounting and auditing. International Journal of Corporate Finance and Accounting (IJCFA), 8 (1), pp.1-14.
ELTWERI, A. 2020. Fintech in Africa. Available at www.alexpander.it
ELTWERI, A. 2020. Social and Environmental Responsibility Effect on a Company’s Financial Performance. Available at www.alexpander.it
ELTWERI, A. 2020. The cultural aspects of accounting development in the MENA Region. Available at www.alexpander.it
ELTWERI, A. 2020. The forthcoming chapter of accountancy using Blockchain. Available at www.alexpander.it
ELTWERI, A. 2021. The Artificial Intelligence Ethical Implications in Auditing Public Sector. Available at www.alexpander.it
ELTWERI, A. 2021. The Blockchain Impact on the Current Auditing Standards. Available at www.alexpander.it
ELTWERI, A. 2021. The Corporate Governance Effects on the Audit Committees Performance. Available at www.alexpander.it
ELTWERI, A. and CAVALIERE, M.L.P.L. 2020a. Impact of E-Accounting Practices upon the Performance of Business. PROCEEDINGS E-BOOK, 240.
ELTWERI, A. and CAVALIERE, M.L.P.L. 2020b. Lessons in Corporate Governance to Learn From More Developed Countries. PROCEEDINGS E-BOOK, 57.
ELTWERI, A., ALTARAWNAH, M., AL-HAJAYA K., & AL-KARAKI, W. 2018. Auditing profession regulation: Lesson learned from code and common law countries regulatory approaches. Risk Governance and Control: Financial Markets & Institutions, 8(3), 80-101.
ELTWERI, A., FACCIA, A. and CAVALIERE, L.P.L., 2020. The role of culture on the adoption of International Standards on Auditing in the developing countries: An institutional perspective. Journal of Governance and Regulation, Vol. 9 No. 4. pp162-171
ELTWERI, A., FACCIA, A., ROXANA MOŞTEANU, N., SAWAN, N. and PIO LEONARDO CAVALIERE, L. 2020. The Role of Risk Management in Auditing E-Business. 2020 The 4th International Conference on Software and e-Business of Conference.
ELTWERI, A., SAWAN, N. and TAHAR, A.R. 2018. The Harmonising of Auditing Standards in Emerging Economies from The Stakeholders’ Perspectives. Corporate Ownership and Control, 15, 201-212.
EY 2017. How blockchain will revolutionize finance and auditing. Available at: https:// betterworkingworld.ey.com/digital/blockchain-why-finance-and-auditing-willnever-be-the-same (accessed 02 Jan 2021).
FACCIA, A. and MOSTEANU, N.R., 2019. Accounting and blockchain technology: from double-entry to triple-entry. The Business & Management Review, 10(2), pp.108-116.
FACCIA, A. and MOSTEANU, N.R., 2019. Accounting and blockchain technology: from double-entry to triple-entry. The Business & Management Review, 10(2), pp.108-116.
FACCIA, A. and MOSTEANU, N.R., 2019. Tax evasion information system and blockchain. Journal of Information Systems & Operations Management, 13(1).
FACCIA, A., 2019, August. Data and Information Flows: Assessing Threads and Opportunities to Ensure Privacy and Investment Returns. In Proceedings of the 2019 3rd International Conference on Cloud and Big Data Computing (pp. 54-59).
FACCIA, A., Al NAQBI, M.Y.K. and LOOTAH, S.A., 2019, August. Integrated Cloud Financial Accounting Cycle: How Artificial Intelligence, Blockchain, and XBRL will Change the Accounting, Fiscal and Auditing Practices. In Proceedings of the 2019 3rd International Conference on Cloud and Big Data Computing (pp. 31-37).
FACCIA, A., DE LUCIA, C., ELTWERI, A., SAWAN, N. AND PIO LEONARDO CAVALIERE, L., 2020. Extended Audit Report: Enhancing Trust and Reputation in IT Processes and across E-business Industries. In 2020 2nd International Conference on E-Business and E-commerce Engineering (pp. 23-27).
FACCIA, A., MOSTEANU, N.R., FAHED, M. and CAPITANIO, F., 2019. Accounting Information Systems and ERP in the UAE: An Assessment of the Current and Future Challenges to Handle Big Data. In Proceedings of the 2019 3rd International Conference on Cloud and Big Data Computing (pp. 90-94).
GAUTHIER, M.P. and BRENDER, N., 2021. How do the current auditing standards fit the emergent use of blockchain?. Managerial Auditing Journal, 12, 289-316
KWILINSKI, A., 2019. Implementation of Blockchain Technology in Accounting Sphere. Academy of Accounting and Financial Studies Journal, 23, pp. 1-6.
LI, A., TIAN, G., MIAO, M. and GONG, J., 2021. Blockchain-based cross-user data shared auditing. Connection Science, pp.1-21.
LOMBARDI, D., BLOCH, R. and VASARHELYI, M., 2014. The future of audit. JISTEM-Journal of Information Systems and Technology Management, 11(1), pp.21-32.
LOMBARDI, R., DE VILLIERS, C., MOSCARIELLO, N. AND PIZZO, M. 2021. The disruption of blockchain in auditing – a systematic literature review and an agenda for future research, Accounting, Auditing & Accountability Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/AAAJ-10-2020-4992
MAFFEI, M., CASCIELLO, R. and MEUCCI, F., 2021. Blockchain technology: uninvestigated issues emerging from an integrated view within accounting and auditing practices. Journal of Organizational Change Management,
MOŞTEANU N. R. 2020. Finance digitalization and its impact on labour market. Technium Social Sciences Journal, Vol.8/ June 2020, 598-605.
MOŞTEANU N. R. 2020. Green Sustainable Regional Development and Digital Era. In Proceedings of Green Buildings and Renewable Energy, Springer, Ch.13, 181-197.
MOŞTEANU N. R., FACCIA, A. 2020. Digital Systems and New Challenges of Financial Management – FinTech, XBRL, Blockchain and Cryptocurrencies. Quality-Access to Success Journal, 21(174), 159-166.
MOŞTEANU N. R., FACCIA, A., ANSARI A., SHAMOUT, M. D. 2020. Sustainability Integration in Supply Chain Management through Systematic Literature Review. Quality-Access to Success Journal, 21(176), 117-123.
MOŞTEANU N. R., GALEA K. 2020. Artificial Intelligence and Cyber Security – face to face with Cyberattack – a Maltese case of Risk Management approach. Ecoforum Journal, 9(2)
PETRATOS, P., & FACCIA, A. 2019. Accounting Information Systems and System of Systems: Assessing Security with Attack Surface Methodology. In Proceedings of the 2019 3rd International Conference on Cloud and Big Data Computing (pp. 100-105).
SANKA, A.I. and CHEUNG, R.C., 2019. October. Blockchain: Panacea for Corrupt Practices in Developing Countries. In 2019 2nd International Conference of the IEEE Nigeria Computer Chapter (NigeriaComputConf) (pp. 1-7). IEEE.
SAWAN, N., ELTWERI, A., DE LUCIA, C., PIO LEONARDO CAVALIERE, L., FACCIA, A. and ROXANA MOŞTEANU, N. 2020. Mixed and Augmented Reality Applications in the Sport Industry. 2020 2nd International Conference on E-Business and E-commerce Engineering of Conference.
SECINARO, S., CALANDRA, D. and BIANCONE, P. 2021. Blockchain, trust, and trust accounting: can blockchain technology substitute trust created by intermediaries in trust accounting? A theoretical examination, International Journal of Management Practice, Vol. 14 No. 2, p. 129.
TAN, B.S. and LOW, K.Y., 2019. Blockchain as the database engine in the accounting system. Australian Accounting Review, 29(2), pp.312-318.
TROSHANI, I., LOCKE, J. and ROWBOTTOM, N. 2019. Transformation of accounting through digital standardization, Accounting, Auditing and Accountability Journal, Vol. 32 No. 1, pp. 133-162.
TURKER, I. and BICER, A.A. 2020. How to use blockchain effectively in auditing and assurance services”, Contributions to Management Science, Springer, Cham, pp. 457-471, doi: 10.1007/978- 3-030-29739-8_22.
WAGNER, J.M., 2016. Continuous auditing-The future of internal audit. Innovation Management and Education Excellence, pp.3244-3252.
XU, M., CHEN, X. and KOU, G. 2019. A systematic review of blockchain”, Financial Innovation, Vol. 5 No. 1, p. 27.
ZEMANKOVA, A. 2019. Artificial intelligence and blockchain in audit and accounting: literature review”, WSEAS Transactions on Business and Economics, World Scientific and Engineering Academy and Society, Vol. 16, pp.