Peculiarities of Auditing Small and Medium-Sized Enterprises in the Context of Digitalization

Viktoriia Lezhanina

Citation: Viktoriia Lezhanina, "Peculiarities of Auditing Small and Medium-Sized Enterprises in the Context of Digitalization", Universal Library of Business and Economics, Volume 02, Issue 01.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This article provides a comprehensive examination of audit practices in small and medium-sized enterprises (SMEs) undergoing digital transformation. Drawing on contemporary research and industry insights, it explores how cloud-based systems, artificial intelligence, and automation tools reshape auditors’ roles, methodological approaches, and risk management strategies. The discussion highlights critical cybersecurity concerns, risks of data misrepresentation in cloud environments, and evolving expectations for transparency and reliability in financial reporting. In addressing these challenges, the paper underscores the importance of robust internal controls, enhanced staff competencies, and a continuous monitoring approach. Additionally, it identifies prospective mechanisms for improvement, such as deeper adoption of analytics dashboards, maturity models tailored to digital auditing, and strategic collaborations with technology providers. Overall, the findings illuminate the pathways by which SMEs and their auditors can harmonize technological progress with the core principles of thorough, ethical, and high-quality assurance.


Keywords: Auditing; Small and Medium-Sized Enterprises; Digital Transformation; Cybersecurity; AI-Driven Audit; Cloud Computing; Internal Controls; Audit Risk Management.

Download doi https://doi.org/10.70315/uloap.ulbec.2025.0201009