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Transformation of External Auditors in Audit Practices Through the Use of Cloud Technology
Abstract
The adoption of cloud technology is reshaping auditing practices, offering significant advancements for non-Big4 audit firms. This study investigates the integration of cloud computing in audits, focusing on its transformative potential, challenges, and implications for efficiency and quality. The research employs a qualitative approach, using semi-structured interviews with external auditors from non-Big4 firms in Jakarta, registered with the OJK and PPPK of the Ministry of Finance of the Republic of Indonesia. Key findings reveal that cloud technology enhances audit efficiency through real-time data access, streamlined workflows, and improved collaboration, eliminating traditional barriers of time and geography. The integration of AI into cloud systems further optimizes processes, enabling faster data analysis, anomaly detection, and informed decision-making. These advancements significantly reduce operational costs and accelerate audit completion. However, the study also uncovers notable challenges, including data security vulnerabilities, the dependence on client-controlled systems, and difficulties in verifying document authenticity. Specific audit procedures, such as hierarchical reviews and physical site inspections, remain reliant on human judgment, underscoring the indispensable role of auditor expertise. The research highlights the critical role of regulatory compliance, advocating for tailored audit protocols that align with standards such as SA 500 and SA 505. Strong encryption, role-based access controls, and robust collaboration frameworks are identified as essential for mitigating risks and safeguarding audit data. This research contributes to bridging the gap in understanding cloud technology's application in auditing, providing actionable insights for audit firms transitioning into digital environments. It advocates a balanced approach where technological innovations complement human expertise, ensuring audit quality, efficiency, and sustainability. By addressing the challenges of integration and fostering collaboration between auditors and clients, this study addresses the issues of future advancements in audit methodologies, helping non-Big4 firms enhance their competitiveness in an evolving digital landscape.
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