Effective Auditing Report and Economic Growth: The Role of Technological Integration

Abstract

Purpose: The quality and reliability of auditing reports are crucial in promoting financial transparency and fostering economic growth. An effective auditing report provides stakeholders with an accurate representation of an organization’s financial position, which is essential for making informed economic decisions. In developing and emerging economies, where financial markets are still evolving, the accuracy of audit reports can significantly influence the financial stability and growth of both individual firms and the broader economy. However, despite the established importance of auditing, challenges in ensuring the accuracy and timeliness of audit reports persist, particularly in environments where manual processes still dominate auditing practices. As a result, economic growth in such regions may be stunted due to lack of investor confidence, increased risk, and limited access to capital.

Methodology: The sample size for this study is 255 respondents, selected from a population of auditors, financial analysts, regulatory bodies, and technology specialists within the financial and auditing sectors.

Findings: The study revealed a positive and significant effect of Effective Auditing Reports on Economic Growth. Similarly, the study found a positive effect of Effective Auditing Reports on Technological Integration. Furthermore, the findings confirmed that Technological Integration positively influences Economic Growth. Lastly, the study established that Technological Integration partially mediates the relationship between Effective Auditing Reports and Economic Growth.

Unique Contribution: It contributes to the growing body of literature by bridging the gap between technological adoption in auditing and its broader economic implications. policymakers must ensure that auditing practices align with new technological trends to maintain financial integrity and accountability.