Published Online:October 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP131025
DOI:10.71329/IUPJARAP/2025.24.4.260-281
Author Name:Tharindu Prabashwara Attanayake and Gayathri Chethika Goonaratne
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:260-281
The auditing profession is undergoing a paradigm shift, as emerging technologies— artificial intelligence (AI), blockchain, virtual reality (VR), data analytics, and ESG assurance—collectively redefine traditional methodologies. Through a systematic narrative review of 42 academic and industry sources (2017-2024), this paper presents three critical contributions: demonstrates how AI-driven predictive analytics (89% fraud detection), blockchain-verified evidence (72% reconciliation time), and VR-enabled remote audits (100% travel reduction) create a new continuous auditing paradigm; identifies crosscutting barriers, including data integrity risks (67% of AI implementations), regulatory fragmentation (14 competing ESG standards), and skill gaps (89% of mid-tier firms lack tech competencies); and proposes a phased roadmap aligning technology integration with ISA/ASA standards, emphasizing priority sequencing (analytics blockchain AI VR), hybrid workflows balancing algorithmic outputs (82/100 reliability score) with professional judgment, governance protocols for algorithmic bias mitigation, and smart contract auditing. The empirical findings reveal stark disparities in adoption: large firms invest $2.3 mn in audit tech versus <$50,000 for SMEs, risking a digital divide in audit quality. The study concludes by outlining future research directions, including empirical validations of AI explainability techniques and blockchain’s impact on stakeholder trust.
In today’s rapidly evolving technological environment, auditing is undergoing significant transformation, as advanced tools such as artificial intelligence (AI), blockchain, data analytics, virtual reality (VR), and Environmental, Social, and Governance (ESG) assurance become increasingly integrated into audit practices (Goto, 2023; Königstorfer & Thalmann, 2022; Vitali & Giuliani, 2024).