The Impact of Digital Audit and Artificial Intelligence on the Field of Audit

Digitalization, big data and artificial intelligence (AI) are shifting auditing from periodic, sample-based verification towards data-driven procedures that can cover entire populations of transactions. This article examines the conceptual foundations of digital auditing, the opportunities and limitations of AI in audit practice, and the institutional environment that is emerging in Azerbaijan. The study combines a structured review of peer-reviewed literature, documentary and normative-legal analysis, and a comparative review of publicly described Big Four audit platforms (Deloitte Omnia, PwC Halo, EY Helix, KPMG Clara). It assesses how recent national developments—the Artificial Intelligence Strategy of the Republic of Azerbaijan for 2025–2028 (Presidential Order No. 530 of 19 March 2025), the Regulation on the “Digital State Finance” Information System (RDMİS) approved by Presidential Decree No. 590 of 26 January 2026, and the “State Audit” Information System (DAİS) established by Presidential Decree No. 768 of 14 August 2026—relate to international requirements, including ISA 315 (Revised 2019), ISA 240 (Revised) and the 2024 PCAOB amendments to AS 1105 and AS 2301. The findings suggest that Azerbaijan is building the data infrastructure required for analytics-based public-sector audit, while audit-specific AI governance, auditor competence and data-protection safeguards remain open issues. A balanced, principles-based approach to regulation is proposed.