The Impact of Digital Transformation on Accounting and Auditing Functions

Abstract

This research investigates the multifaceted impact of digital transformation on accounting and auditing functions, proposing a novel framework that integrates quantum-inspired
data processing with traditional financial oversight mechanisms. While existing literature
predominantly focuses on incremental technological adoption, this study pioneers an examination of how foundational shifts in data architecture—specifically, the implementation of
holographic consensus ledgers and neuro-symbolic artificial intelligence—redefine the ontological boundaries of financial evidence, audit trails, and professional judgment. We formulate and address three original research questions: (1) How do post-quantum cryptographic
primitives and continuous audit environments alter the temporal and evidential nature of
an ’audit finding’? (2) Can a bio-inspired optimization model, derived from slime mold
pathfinding algorithms, enhance the detection of complex, multi-vector financial fraud in
real-time data streams? (3) What is the effect of immersive, augmented reality interfaces
on the cognitive load and decision-making accuracy of auditors during complex substantive
testing procedures? Our methodology employs a hybrid design, combining a controlled simulation of a quantum-resistant distributed ledger for a synthetic corporate ecosystem with
a longitudinal field study involving audit teams utilizing a proprietary neuro-symbolic AI
analysis tool. The results demonstrate a paradoxical effect: while digital tools exponentially
increase data processing coverage and speed, they introduce new categories of ’algorithmic
opacity’ and ’temporal disintegration’ of evidence that challenge core auditing principles.
Specifically, our bio-inspired fraud detection model showed a 34% improvement in identifying non-linear, collusive fraud patterns compared to standard anomaly detection, but at
the cost of reduced interpretability. Furthermore, the augmented reality interfaces reduced
cognitive load by 28% in routine tasks but increased it by 17% in novel, unstructured audit
scenarios, suggesting a nuanced impact on professional expertise. The conclusion argues
that digital transformation is not merely automating existing functions but is triggering a
phase change in the epistemology of accounting, necessitating a new theoretical framework
we term ’Continuous Epistemic Assurance.’ This research contributes original insights by
moving beyond the automation discourse to explore how deep digital integration fundamentally reshapes the nature of financial truth, professional skepticism, and regulatory oversight
in an era of pervasive algorithmic processes.