Impact of electronic Internal auditing and digital transformation Based on IT to reduce auditing risk

Impact of electronic Internal auditing and digital transformation Based on IT to reduce auditing risk
Introduction :
The Middle Eastern government Such as Iraq have struggled to reduce corruption, safeguard integrity and establish effective institutions for running country’s affairs. The (OECD) create the responsible government to reduce risk management and control internal audit operations. According to Garven and Scarlata 2020, in many companies the employees are work for self-interest but internal auditing requirement for a steward (auditor works with a corporation).
As global market increase multiplicity, many risks are raise, that increases the need for timely and accurate Audit procedure.(Beaslaey et Al.,2005).
Continuous internal auditing refers to an ongoing and systematic process within an organization where internal audit activities are conducted regularly, often in real-time or near-real-time, to assess and enhance the effectiveness of risk management.Control Objectives for information and related technologies (COBIT) is carefully weighed among the models, through which status of IT can be valuate, and this strategy is accomplish through a IT operations model. This smart IT environment can be pick up by client relationships, auditing and expertise (Alhawari et Al.,2012). Audit techniques helps the Auditors to increase efficiency and effectiveness, thus,the electronic audit is not without faults.
Internal Control System are also needed in auditing to ensure the accuracy of Financial reporting and observance with laws.internal control system objectives are following:
⦁ Highlights Difficulties and Obstacles
⦁ Threats facing the internal auditing
⦁ Illegal restrictions
Finally, the effect of (EIA) based on (COBIT) framework (Joshi et Al.,2013).
Researcher of present study try to bond the gap created by previous study and the extent to which present study.This research is persistent with several previous Studies (Lois et al.,2020; Flayyih et al.,2022).The present study’s contribution is the COBIT framework in electronic auditing system to reduce risks of EIA.
Literature Review
The implication of the study arises from the oversee of guide public expenditure and it’s impact on the federal budget,the role of internal auditor should play in government units,the public sector contain entity under the instruction of central and local government.The public sector tries to deliver services to the public without charging or suggestive cost as the profit is not the primary motive.
The Institute of Internal Auditor (IIA) Guidance 2011 specifies that the public sector contain government and all agencies. The primary government is at the bottom line of public sector.Internal Auditing is defined by the IIA as an;” Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations.” It helps evaluate and improve the effectiveness of risk management, control, and identity frauds and fix errors, if any (jezovita et Al.,2018).
Digital transformation in internal auditing refers to the integration and utilization of digital technologies to enhance and streamline auditing processes within an organization. It involves adopting digital tools, data analytics, automatic control, and advanced technologies to improve the efficiency, effectiveness, and insights gained from internal audit activities. This transformation aims to align internal auditing with the rapidly evolving digital landscape, and data-driven audit practices.
Developing the professional capability of auditors in the Middle East and North Africa depends on the confirmation of fundamental strength by professional bodies and other enterprise aimed at skill development. Thus,internal auditors must keep up to date with latest development and techniques,and also comply international auditing standards.(Vasile & Croitoru,2019). Internal auditors should play a crucial role in safeguarding organizations from embezzlement by conducting regular audits to:
Detect Anomalies, Evaluate Controls, Risk assessment, Compliance monitoring, Employee screening, Whistleblower programs,and technology audits.By actively addressing these aspects, internal auditors contribute significantly to the overall protection of organizations against embezzlement.
Hypothesis Development:
The following Alternate hypothesis can be formulated from Electronic internal Auditing and Digital transformation studies:
H1: There is statistically significant relationship between EIA (electronic internal auditing) and reduce RA (risk auditing).
H2: Remote Auditing positively effects the implementation of continuous internal auditing.
H3: IT system installation costs negatively affect the implementation of continuous internal auditing.
H4: Technology has no effect on the implementation of continuous internal auditing.
Research Methodology:
In order to ensure reliability, the date is collected through questionnaire. Their is 200 employees in GCBED ( General Company for Electricity Distribution of Baghdad. But we analysed based on number of respondents 120 employees , the employees were financial managers, internal auditors and workers. The data is also collected through a closed questions Survey for the reasons of practically, Scalability and anonymity, Sampling consists of 105 internal auditors employed in some of the largest institutions In Greece.
The methods of measuring variables
The questionnaire included two variables.The first is independent variable,the EIA,which includes three dimensions (Compliance assessment, Risk assessment and Control assurance). Risk Auditing was a dependent variable.The five point Likert scale,which is ordinal scale was used.
COBIT Framework
The COBIT (Control Objectives for information and related technologies) framework used in this study to see its effect on internal auditing.

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