The Role of Audit Committees in Enhancing Financial Statement Transparency and Stakeholder Trust

Posted: Dec 13, 2023

• Anderson Perry
• Lila Armstrong
• Evie Martinez

Abstract

This research investigates the transformative potential of blockchain technology and artificial intelligence in redefining the role of corporate audit committees. Traditional audit committee functions have been constrained by manual processes, information asymmetry, and retrospective analysis limitations. Our study proposes a novel framework integrating distributed ledger technology with machine learning algorithms to create real-time, transparent financial reporting ecosystems. We developed and tested a prototype system that enables continuous auditing, automated anomaly detection, and stakeholder-accessible verification mechanisms. The methodology combines computational modeling with empirical analysis of simulated corporate environments, examining how technological augmentation affects audit committee effectiveness, financial transparency metrics, and stakeholder confidence indicators. Our findings demonstrate that technologically-enhanced audit committees can achieve 87