The Impact of Blockchain Technology on the Development of the Internal Audit Function in Banks Operating in Yemen - Sana'a

Abstract

The objective of this study was to ascertain the extent to which blockchain technology impacts the speed and accuracy of transactions, encryption technology (security and protection), transparency and credibility, and decentralisation. The objective of the study was twofold: firstly, to ascertain the extent to which these dimensions enhance the efficiency and effectiveness of internal audit operations; and secondly, to develop the internal audit function. The present study employed a descriptive-analytical approach. The study population comprised employees working in the 22 banks operating in Sana'a. The present study sample comprised 140 specialist employees from Yemeni banking institutions, including financial managers, heads of internal audit departments, financial administration employees, internal audit employees and information technology employees. The study concluded that blockchain technology exerts a statistically significant impact on the development of the internal audit function in banking institutions in the Republic of Yemen. The technology in question has been demonstrated to improve the speed and accuracy of financial transactions, enhance data security and protection through encryption techniques, increase the transparency and traceability of financial operations and support the decentralisation of information management and exchange.