Digitalization in Public (External) Auditing Fields-the Challenges: An Empirical View of Albania

Abstract

The rapid growth of digital technologies has transformed numerous industries, with auditing being no exception. Digitalization in auditing introduces innovative tools and processes, improving efficiency and accuracy in auditing practices. However, the adoption of digital technologies in these field in Albania's faces several challenges. The digitalization of auditing has brought about substantial changes in how audits are conducted globally, including within the scope of external auditing carried out by Supreme Audit Institutions (SAIs). This paper examines the challenges faced by Albania's external auditors in adapting to digital technologies in the audit process, especially within the context of the SAI. Despite the potential benefits of digitalization - such as increased efficiency, transparency, and improved accuracy - several obstacles hinder its full implementation in Albania. These include resistance to change, insufficient digital skills, inadequate infrastructure, data security concerns, inadequate infrastructure, and regulatory gaps and regulatory challenges. Based on empirical data gathered from surveys and interviews with external auditors, this paper analyzes these challenges and provides recommendations for overcoming them to enhance the effectiveness of digital auditing in Albania’s Supreme Audit Institution. This paper explores the impact of digitalization on auditing, identifying the key challenges including cybersecurity risks, the need for continuous skill development, data privacy concerns, over-reliance on automation, and regulatory compliance.