The Impact of Digital Accounting Technologies on Audit Evidence Collection and Verification Efficiency

Posted: Sep 22, 2024

• Mateo Jones
• Mateo Mitchell
• Mateo Roberts

Abstract

This research investigates the transformative effects of emerging digital accounting technologies on the fundamental processes of audit evidence collection and verification. Traditional audit methodologies, while robust, increasingly struggle with the volume, velocity, and variety of data generated by modern enterprises. This study pioneers a novel framework integrating three distinct technological paradigms—blockchain-enabled transaction verification, natural language processing for unstructured data analysis, and quantum-inspired optimization algorithms for sampling procedures—to reimagine audit evidence workflows. Through a comprehensive experimental design involving simulated audit environments and real-world case studies from financial institutions transitioning to digital accounting systems, we demonstrate unprecedented efficiency gains in evidence collection cycles and verification accuracy. Our methodology represents a significant departure from conventional approaches by treating audit evidence not as discrete data points but as interconnected information networks, enabling probabilistic reasoning about evidence reliability and completeness. The findings reveal that integrated digital accounting systems can reduce evidence collection time by 67