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Effects of digitalisation of organisations on internal audit activities and practices

Effects of digitalisation of organisations on internal audit activities and practices This paper aims to investigate how the internal audit function (IAF) modifies its activities and practices in relation to the digitalisation the organisation. This paper specifically examines the use of data analytics and the performance of consulting activities by internal auditors.Design/methodology/approachThis paper is based on a survey conducted with 82 chief audit executives based in the USA and members of the institute of internal auditors.FindingsResults indicate a positive relation between the organisation’s level of digitalisation and the use of data analytics by internal auditors during their missions. Results also indicate that the organisation’s level of digitalisation has an indirect effect on the proportion of the internal audit planning dedicated to consulting activities. Specifically, the use of data analytics mediates the relationship between the organisation’s level of digitalisation and the proportion of the internal audit planning dedicated to consulting activities.Research limitations/implicationsThis research was conducted amongst internal auditors based in the US Future research could investigate the insights of other internal audit stakeholders and investigate different legal contexts.Practical implicationsResults show that digitalisation increases the use of data analytics by internal auditors and the performance of consulting activities. The results, therefore, highlight the importance of these two aspects for the IAF to continue to bring value to organisations.Originality/valueThis research provides more insights on internal audit working practices. The digitalisation of the organisation leads the IAF to use more data analytics and perform more consulting activities. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Managerial Auditing Journal Emerald Publishing

Effects of digitalisation of organisations on internal audit activities and practices

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0268-6902
DOI
10.1108/maj-08-2020-2792
Publisher site
See Article on Publisher Site

Abstract

This paper aims to investigate how the internal audit function (IAF) modifies its activities and practices in relation to the digitalisation the organisation. This paper specifically examines the use of data analytics and the performance of consulting activities by internal auditors.Design/methodology/approachThis paper is based on a survey conducted with 82 chief audit executives based in the USA and members of the institute of internal auditors.FindingsResults indicate a positive relation between the organisation’s level of digitalisation and the use of data analytics by internal auditors during their missions. Results also indicate that the organisation’s level of digitalisation has an indirect effect on the proportion of the internal audit planning dedicated to consulting activities. Specifically, the use of data analytics mediates the relationship between the organisation’s level of digitalisation and the proportion of the internal audit planning dedicated to consulting activities.Research limitations/implicationsThis research was conducted amongst internal auditors based in the US Future research could investigate the insights of other internal audit stakeholders and investigate different legal contexts.Practical implicationsResults show that digitalisation increases the use of data analytics by internal auditors and the performance of consulting activities. The results, therefore, highlight the importance of these two aspects for the IAF to continue to bring value to organisations.Originality/valueThis research provides more insights on internal audit working practices. The digitalisation of the organisation leads the IAF to use more data analytics and perform more consulting activities.

Journal

Managerial Auditing JournalEmerald Publishing

Published: Aug 25, 2021

Keywords: Survey; Consulting; Digitalisation; Data analytics; Internal audit

References