The Evolving Role of Auditors in Enhancing Corporate Transparency and Accountability in the Digital Age

Abstract

In an era characterized by increasing complexity in financial systems and accelerating digital transformation, the role of auditors has undergone a fundamental shift. Once perceived primarily as watchdogs of financial accuracy, auditors are now being repositioned as strategic partners in fostering corporate transparency and accountability. This paper explores the theoretical and practical evolution of the auditing profession, particularly in the face of digital disruption, stakeholder activism, and regulatory demands. It synthesizes key perspectives from agency theory, stakeholder theory, and institutional theory to examine how auditors contribute to trust-building in capital markets. Furthermore, it addresses the implications of emerging technologies—such as artificial intelligence, blockchain, and data analytics—on audit methodology, independence, and assurance quality. The paper concludes by offering insights for policymakers and practitioners to strengthen audit effectiveness in the digital age.