DOI: https://doi.org/10.36719/2663-4619/127/15-33
Valentyna Panasyuk 
West Ukrainian National University
Ternopil, Ukraine
Doctor of Economic Sciences
v.panasyuk@ujis.in.ua
Dmytro Sushko
Academician Yuriy Bugay International University of
Science and Technology
Kyiv, Ukraine
PhD in Economics
dsushko@pspaudit.ua
Anastasiia Punda
West Ukrainian National University
Ternopil, Ukraine
PhD in Public Administration
punda1985@gmail.com
Sergii Kharchenko
West Ukrainian National University
Ternopil, Ukraine
PhD in Public Administration
karmelitb@ukr.net
Volodymyr Lominskyi
West Ukrainian National University
Ternopil, Ukraine
PhD student
l.volodimyr@gmail.com
Digital Technologies in Auditing to Ensure Financial Security:
Transformation of Accounting Processes and Financial Risk Management
Abstract
The digitization of auditing is transforming accounting processes and financial risk management frameworks, changing the ways in which companies build their evidence base and control environment. The relevance of this study stems from the need to empirically assess whether the intensity of digital audit tools use is related to indicators of audit quality and financial stability of companies. The aim of the study is to analyze the impact of digital audit intensity on financial reporting quality markers and financial security proxies. The study was conducted in the form of a quantitative panel analysis for 2018–2024 on a sample of companies from 12 countries. Digital intensity is operationalized through the integral DigitalAuditIndex. Pairwise correlations, quartile differences, and panel models with fixed effects and clustered standard errors are estimated. The results demonstrate a statistically significant negative relationship between the DigitalAuditIndex and the probability of financial restatements and material weaknesses. Higher levels of digital audit intensity are associated with lower debt burden (Debt/Assets), lower volatility of profitability (ROA), and moderately higher current liquidity. Correlation estimates confirm the stability of the direction of relationships in parametric and rank settings. Quartile analysis shows a lower frequency of negative audit markers in the group with a high level of digital audit. Digital audit intensity is associated with a more stable control environment.
The practical significance lies in the possibility of using integrated indicators of digital intensity to assess the transformation of internal control and financial stability in the context of digitalization.
Keywords: audit, digital technologies, digital audit, risks, financial instruments, digitization of accounting, financial security