Document Type : Conceptual Paper


Department of Accounting, Arab East College, Riyadh, Saudi Arabia


This research aims to analyze the impact of the increasing development of financial technology on the auditing profession. To achieve this goal, it defined financial technology as the use of technological innovation in the financial sector using the online market as a place to provide solutions to various financial problems experienced by digital customers through the development of strategic models, processes, applications, or innovative products. The auditing profession faces great challenges; the changes brought about by fourth industrial revolution are not limited to technology only, but have extended to include the need to redesign some of the concepts that constitute the basic building blocks of accounting and auditing; like the concept of value. The changing face of the business environment may shift professional services from focusing on assurance services to focusing on non- assurance services. The research concluded that financial technology innovations enhance the use of the real time audit approach and the emergence of audit applications. The research also concluded that there is an update in the professional assurance services currently provided by the auditor. The role of the auditor emerged in assurance management’s assertions regarding the effectiveness of internal control over information technology, management’s disclosures regarding the application of artificial intelligence tools, auditing fair value estimates and accounting estimates prepared using artificial intelligence tools, management’s disclosures about cybersecurity risks, and cyber security risks management. Finally, the research concluded that new professional services have emerged, including auditing smart contracts, Trust assurance service in blockchains system, the function of the central administrator, and the function of arbitration in disputes. However, to achieve the future vision of professional assurance services for the auditor, the profession needs to overcome a number of challenges. First, it is to bridge the gap between the approach and method of real time audit and current auditing standards. Second, high investment to create tools to automate the audit.


Main Subjects


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