The rapidInternet of Things (IoT) advancementDigital Transformation of digital technologies has led to significant transformations across all business functions, including auditing. Among these technologies, the Internet of Things (IoT) stands out as a game-changer, enabling real-time data collection, communication between devices, and automation of numerous operational processes. This paper explores how IoT is reshaping traditional audit practices by enhancing data accuracy, reducing human error, and enabling continuous auditing. Through the integration of smart sensors, interconnected devices, and real-time analytics, auditors can now obtain more timely, relevant, and comprehensive insights. The study highlights the potential of IoT to improve audit quality, efficiency, and cost-effectiveness, while also discussing the challenges and structural changes required for successful adoption. This new dimension of digital transformation in auditing not only enhances operational efficiency but also provides a strategic advantage in an increasingly data-driven business environment.