A study of decentralized finance auditing using financial technologies

Abstract

This article explores the application of financial technologies in the auditing of decentralized finance (DeFi) and how these technologies can improve the audit process. The research aims to identify the main challenges faced in DeFi auditing and to offer recommendations for strengthening audit methodologies using financial technologies (FinTech). The article discusses decentralized finance and its innovative management principles based on blockchain technology, which fundamentally transforms traditional financial systems. The study identifies key risks associated with DeFi, such as vulnerabilities in smart contracts and the lack of regulatory frameworks. The theoretical foundation includes a detailed analysis of the differences between traditional and decentralized finance, highlighting DeFi’s advantages – lower operational costs, greater accessibility, and transparency – while addressing regulatory and security challenges. The research methodology is based on scientific literature analysis and the classification of FinTech tools according to established criteria to evaluate the effectiveness of audit methods and their potential for improvement. The main findings show that FinTech tools, such as artificial intelligence (e.g., decision tree models) and blockchain technology, enhance the reliability and speed of DeFi audits while highlighting the need for a more robust regulatory system. This article is relevant due to the rapid growth of the DeFi sector and its importance in the digital transformation of the financial industry. Moreover, this research aims to classify the most widely used financial technology tools according to their functions and analyze their impact on traditional and decentralized finance auditing processes, offering insights for improving audit methodologies.