Public Sector Auditing in the Era of Digital Transformation: Challenges and Opportunities

Abstract

The rapid pace of digital transformation has redefined the
landscape of public sector auditing, raising critical questions
about how emerging technologies can enhance efficiency,
accountability, and transparency. This study systematically
reviews peer-reviewed literature to examine the challenges
and opportunities that digital tools such as big data
analytics, blockchain, and artificial intelligence present in
public auditing. Drawing on a diverse range of empirical and
conceptual studies, the analysis reveals that these
technologies improve data accessibility, enable real-time
monitoring, and strengthen fraud detection capabilities. The
discussion highlights how integrating technology into
auditing processes requires strategic alignment with
governance frameworks, adequate auditor training, and
robust data governance policies. Findings underscore that
successful adoption depends on balancing innovation with
ethical considerations, capacity building, and legislative
support. The study concludes that technology-enabled
auditing can significantly enhance public trust and
accountability when implemented within a structured and
well-regulated environment.