Digital Transformation and Auditor Independence: The Role of Technology Adoption and Independence in Appearance

In the digital era, the auditing profession is undergoing rapid transformation driven by technological innovations such as artificial intelligence (AI), big data analytics, blockchain, and cloud computing. These technologies have redefined how auditors collect, analyze, and report financial data, enhancing efficiency and accuracy while simultaneously raising ethical and perceptual concerns regarding auditor independence. This study investigates the effect of digital transformation—proxied by technology adoption—on auditor independence, specifically independence in appearance, within the context of 7Up Bottling Company, Benin City, Nigeria. Using a descriptive survey research design, data were collected from 167 accounting and audit staff selected through random sampling. The data were analyzed using descriptive statistics and Pearson correlation analysis. Findings revealed a strong positive and statistically significant relationship between technology adoption and independence in appearance (r = 0.624, p < 0.05), indicating that as technology adoption increases, auditors are perceived as more objective and professionally independent. However, excessive reliance on client-controlled technologies may create a perception of compromised neutrality, potentially undermining stakeholder trust. The study concludes that digital transformation enhances auditor independence when ethical safeguards and technological neutrality are maintained. It recommends that auditors adopt independent audit technologies, regulators enforce digital ethics standards, and continuous professional training be emphasized to preserve both actual and perceived independence in a rapidly digitalizing audit environment.