Digital transformation has changed the way governments process transactions, manage records, monitor controls and demonstrate accountability. As public financial management becomes increasingly data-driven, audit functions must move beyond manual, periodic and sample-based approaches towards more integrated, risk-based and technology-enabled assurance. This conceptual paper examines how digital audit can be strengthened in the public sector through a governance and capability perspective. Drawing on literature in public sector accountability, audit quality, digital government, data analytics and information security, the paper identifies key challenges affecting digital audit implementation, including fragmented systems, weak data quality, limited analytical competency, cybersecurity risk, disconnected audit methodology and resistance to change. The paper proposes a six-dimensional framework consisting of governance, data infrastructure, audit analytics, human capability, cybersecurity and privacy, and continuous improvement. The framework positions digital audit not merely as a software adoption exercise, but as an institutional reform agenda that can improve audit evidence, timeliness, follow-up and public value. The paper contributes to academic and policy discussion by offering a practical structure for government agencies to assess digital audit readiness and plan sustainable transformation.
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