THE ROLE OF AUDIT IN ENSURING TRANSPARENCY OF FINANCIAL STATEMENTS IN THE CONDITIONS OF BUSINESS DIGITALIZATION

Introduction. This article explores the important role of auditing in ensuring the transparency of financial reporting in today’s era of business digitalization. The proliferation of digital technologies and the use of Big Data promote rapid information exchange and make financial data more accessible to users. This, in turn, creates new challenges and opportunities for auditing. Audit services are faced with the task of adapting traditional control methods to new digital tools, which enable not only quicker analysis of reports but also real-time risk detection. Digitalization strengthens the requirements for transparency and reliability of financial data, as the level of trust from stakeholders—investors, creditors, partners, and regulatory bodies—depends on it. Transparent and accurate financial reporting is a key factor in making investment decisions and assessing business stability. Under such conditions, auditing becomes a critical tool that ensures financial reporting accurately reflects the actual financial state of enterprises and enhances the quality of information for decision-making. Given the constant implementation of new digital solutions, auditors must possess not only financial knowledge but also skills in using modern digital tools to effectively perform their duties. Thus, in the context of business digital transformation, auditing plays an increasingly important role by adapting processes to new challenges and needs of the current information environment, thereby contributing to the transparency and reliability of financial reporting.

Methods. The research is based on methods of analysis and comparison, as well as the use of digital tools for auditing. Regulatory analysis was employed to study the requirements related to reporting transparency, along with a review of best practices in digital auditing.

Results. The findings indicate that digital technologies significantly improve the accuracy and productivity of audit procedures. Tools for automated data processing, analytical software, and other digital solutions allow auditors to quickly analyze financial reports, identify anomalies, and detect potential risks at early stages. As a result, auditing can more effectively identify cases of fraud, accounting errors, and other discrepancies that impact the reliability of financial information. In a landscape of high demands for data processing speed and accuracy, digital technologies transform auditing into a key tool for control and transparency enhancement. New technologies, such as artificial intelligence and machine learning, automate many aspects of auditing, reducing the potential for human error while enabling a focus on strategic issues, such as financial risk assessment and compliance with standards. Thus, digital auditing becomes an integral part of the corporate control and accountability system, promoting greater transparency and strengthening stakeholder trust.

Prospects. The further development of digital technologies opens new prospects for improving auditing, particularly through the use of artificial intelligence and machine learning for process automation. The expanded role of digital tools will also contribute to the increased reliability of financial reporting and greater trust in the audit process.

Keywords: audit, transparency, financial reporting, business digitalization, digital audit, audit technologies