Auditing 2.0: why your financial statements aren't enough anymore?

The traditional role of auditors was once closely tied to financial statements, where their primary responsibility was to scrutinize the accuracy and compliance of these statements with accounting standards (DeFond & Zhang, 2014). However, as business environments evolve, the scope of auditing has broadened significantly. Today, auditors must evaluate broader areas of risk, including internal controls (Alles et al., 2014). They must also focus on regulatory compliance (IFA C, 2016). Cybersecurity has become another critical area of audit focus (KPMG Malaysia, 2021). Additionally, auditors are increasingly responsible for assessing environmental, social, and governance (ESG) practices (PwC Malaysia, 2022).