The Challenges of Applying Regulatory Technologies (Regtechs) in the Role of an Auditor

Document Type : Research Paper

Authors

1 Associate Prof., Department of Accounting, Faculty of Economics and Administrative Sciences, University of Qom, Qom, Iran

2 Master of Sciene in Accounting, Faculty of Economics and Administrative Sciences, University of Qom, Qom, Iran

Abstract

Recent technological advancements have significantly transformed the auditing industry. Regulators have leveraged technology to enhance auditing effectiveness and oversight. Regulatory technologies (RegTech), a subset of financial technology, streamline compliance with regulations, enhancing oversight processes. RegTech solutions can serve as auditors by enabling digital assessment of financial reports. This study aims to identify and rank the challenges of employing RegTech in auditing roles. Using a judgmental sampling method, we selected 14 experts, including senior managers and specialists from the Auditing Organization, Central Bank, Fintech Association, National Information Technology Company, and university professors. Through a literature review and expert interviews, 18 challenges were identified. A fuzzy Delphi questionnaire screened these challenges, selecting 11 with a threshold above 0.7. These were then ranked using a priority assessment questionnaire and the MABAC decision-making method. Key challenges include accountability issues, the regulatory gap between digital business conditions and auditing standards, recruitment and retention of RegTech specialists, insufficient integration of modern digital technologies into companies’ accounting information systems, and lack of trust in RegTech among audit report recipients. Identifying these challenges paves the way for advancing technology-based auditing.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 17, Issue 1
September 2025
Pages 149-183

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History

  • Receive Date: 13 November 2024
  • Revise Date: 31 August 2025
  • Accept Date: 08 September 2025

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