Tag: technology audit

The field of performance audit is transitioning from manual retrospective evaluations to real-time and prospective analysis due to the infiltration of technologies such as Big Data, artificial intelligence (AI) and predictive modelling, that is reshaping the efficiency and effectiveness of the audit function. As public institutions increasingly rely on data-driven systems for decision making, the complexity of governance frameworks also increases emphasizing the need for greater scrutiny of such institutions to strengthen transparency, accountability and public trust (Agostino, Lourenco & Jorje, 2025). Digital transformation has proliferated across both public and private sectors, resulting in the generation of enormous volumes of structured and unstructured data that cannot be effectively analysed using conventional audit approaches alone (Basuki, Atarwaman & Layn, 2025). Hence, the need for innovation in performance audit has become more prominent than ever, calling for the development of new tools and techniques to match the dynamics of modern information ecosystem.

The field of auditing faces challenges in keeping pace with unprecedented changes in perspectives and tools brought about by contemporary technologies resulting from technological advancements and the growing reliance on artificial intelligence tools. The information technology environment is no longer merely an assisting vehicle to improve audit quality; rather, it has become the primary driver for redefining the concept of auditing, as affirmed by INTOSAI in its professional pronouncements, which advocate for the development of audit tools and methods to align professional practice with the digital environment. This has prompted the Accountability State Authority (ASA), as the Organization’s chair, to move swiftly in this direction by putting forward pioneering initiatives, such as the Maat Initiative, which was brought up to the 25th INCOSAI agenda in Sharm El-Sheikh in October 2025. This initiative represents a contemporary vision that reflects the importance of utilizing artificial intelligence in the development of audit work, particularly in terms of performance audits that focus on evaluating the performance of government entities to verify the efficiency of public spending, thereby supporting governance and the protection of public funds.

The expanding complexity of digital governance has fundamentally reshaped the audit landscape. Supreme Audit Institutions (SAIs) today confront voluminous financial records, and rapidly evolving programme architectures that strain conventional audit methods. Sample based scrutiny, and conventional data analysis methodologies are increasingly inadequate to detect systemic risks, hidden relationships, and governance failures embedded within interconnected digital systems.

The new ways of doing business in the digital environment have implicated the current audit practices, specifically in financial audit and have directed the audit function into a new path. Auditors need to handle the changes caused by technologies (Yen, Huang, Li, & Hsiah, 2006) As such, this has led into the necessity of new audit procedures, techniques and tools to evaluate the control in order to mitigate the new business risk (Masli, Peters, & Richardson, 2010).  Further, audit standards have clearly stated that the computer-based controls and computer-assisted audit techniques need to be conducted once audit clients have used advanced enterprise systems and depend broadly on Information Technology (IT) (Abdolmohammadi & Boss, 2009). 

In the ever-evolving landscape of financial auditing, the integration of technology has become not just advantageous but essential. This article explores how the use of drones in financial audits, particularly by the São Paulo Municipality Court of Accounts (TCMSP), can enhance accountability and improve the integrity of public resources. The focus will be on the assertion of integrity as cited in International Standards on Auditing (ISA) 315 (Identifying and Assessing the Risks of Material Misstatement), specifically regarding the accounting cycle of real estate assets. The case study illustrates a pragmatic approach to auditing that not only adheres to established norms but also introduces innovative methodologies to address significant issues in public financial management.

Blockchain technology originated in 2008 when an author codenamed Satoshi Nakamoto published the paper titled “Bitcoin: A Peer-To-Peer Electronic Cash System.” The publication presented an innovative combination of computing-related concepts – peer-to-peer (P2P) networks, cryptography, digital signature, hash functions, and a new consensus algorithm for distributed networks.

The International Meeting of Performance Audit Critical Thinkers (IMPACT) Conference, an initiative of the Australasian…

The State Audit Office of Georgia (SAOG) recognized a need for the performance audit of distance learning during the COVID-19 pandemic, and developed related audit findings and recommendations to overcome challenges.