EFFECT OF AUDIT DIGITALIZATION ON FRAUD PREVENTION AND DETECTION: EVIDENCE FROM AUDITORS AT PWC NIGERIA

Abstract

This study investigates the effect of audit digitalization on fraud prevention and detection, using empirical evidence from auditors at PwC Nigeria. It examines the extent of adoption and integration of digital audit technologies, identifies implementation challenges, and evaluates their impact on audit performance. Descriptive statistics show that 60% of auditors have adopted digital audit tools, with an integration rate of 55% into core audit processes. Key barriers include regulatory constraints (30%), cybersecurity vulnerabilities (25%), and skill gaps (25%). Despite these obstacles, correlation analysis reveals strong positive relationships between digital audit implementation and improvements in efficiency (r = 0.85), accuracy (r = 0.75), timeliness (r = 0.90), audit quality (r = 0.95), and stakeholder confidence (r = 0.85). These findings highlight the transformative potential of audit digitalization in enhancing fraud prevention and detection efforts. The study recommends upskilling auditors, regulatory reform, and stakeholder collaboration to overcome adoption barriers and maximize digital audit effectiveness in Nigeria