Digitalization of Intellectual Property Accounting and Audit

Davletov I. R. berganovich1,*, Dusmuratov R. Davlatbayevich2

1Department of Accounting Tashkent State university of economics, Tashkent, Uzbekistan

2Department of Economic analyses and audit Tashkent State university of economics, Tashkent,

Uzbekistan

Abstract

Intellectual property has become a central component of enterprise value, while conventional accounting

and assurance processes remain constrained by fragmented records, periodic controls, and limited traceability.

This integrative review examines how digital innovation technologies can strengthen the identification,

measurement, control, and audit of intellectual property. A structured thematic synthesis was conducted

across accounting, auditing, information systems, and innovation-management literature. The evidence

was organized around six functional domains: asset identification, rights verification, valuation support,

transaction processing, continuous monitoring, and reporting. Findings indicate that data analytics and

artificial intelligence improve classification, valuation inputs, and anomaly detection; robotic process automation

enhances repetitive control execution and evidence assembly; cloud platforms and standardized

data architectures support system integration; and blockchain-based mechanisms improve provenance and

multi-party traceability when legal and governance conditions are established. Across technologies, recurring

limitations concern data quality, model explainability, cybersecurity, interoperability, legal enforceability,

and overreliance on automated outputs. A layered governance framework is therefore proposed that

links each technology to accounting assertions, audit objectives, control ownership, validation procedures,

and human oversight. Effective digitalization depends less on isolated technology adoption than on coordinated

data governance and assurance design. The synthesis identifies priorities for empirical research on

implementation quality, evidential reliability, and professional judgment.

Keywords: Intellectual property; Digital innovation; Accounting; Audit; Data analytics; Automation;

Blockchain; assurance

1 Introduction

Innovation increasingly depends on resources that are difficult to observe through conventional accounting

records. Software, databases, patents, designs, trade secrets, digital platforms, and algorithmic capabilities

may determine an enterprise’s competitive position even when only a limited part of their economic

value qualifies for recognition as an intangible asset. The distinction between economic importance and

accounting recognition is especially significant for internally generated intellectual property. Under IAS

38, expenditure in the research phase is expensed, while development expenditure can be capitalized only

when specified conditions are satisfied [2]. Consequently, reliable systems must distinguish research from

development, connect expenditure to identifiable projects, document technical and commercial feasibility,

and preserve evidence of control over the resulting rights.

The innovation literature also emphasizes that innovation is broader than a single technological invention.

It includes new or improved products, processes, organizational arrangements, and business methods [1].

This broader perspective creates two related accounting challenges. First, enterprises need detailed information

about the resources consumed in innovation activities and the rights produced by those activities.