Digital Transformation in Audit-Japan’s Current Situation in Advantages and Challenges of Adopting Digital Technology

This study examines the impact of technological advancements on the accounting profession in Japan from the early 1990s to the present. Computer-assisted audit techniques (CAATs) and digital documentation have increased auditor efficiency and expertise. However, auditors may encounter challenges, such as limited data analytics tools and infrastructure knowledge, which can be difficult for especialy small and medium-sized enterprises (SMEs) with limited resources. The auditing profession is expected to continue to experience digital advancements, focusing on integrating CAATs and digitized workpapers to enhance efficiency and effectiveness. Possible strategies to overcome these challenges include the development of cost-effective CAATs-specific software solutions, and include comprehensive CAATs courses in undergraduate and graduate programs.