THE SITUATION OF AUDIT AND INTERNAL CONTROL EFFICIENCY THROUGH DIGITIZATION: EVIDENCE FROM THE REPUBLIC OF MOLDOVA

From Traditional Audits to Digital Audits: A Systematic Review of the Impacts and Driving Factors

The rapid diffusion of digital technologies has fundamentally reshaped the way organizations generate and report financial and non-financial information, challenging traditional audit approaches that rely on manual and sample-based procedures. Building on this context, this paper aimed to provide a comprehensive synthesis of empirical evidence regarding the impact of digital technologies on auditing and to identify the key factors influencing their adoption across internal, external, and public sector audit functions during the 2015–2026 period. Using a qualitative descriptive design and a systematic literature review guided by the PICOC framework and PRISMA protocol, 33 relevant articles indexed in Scopus were selected from an initial pool of 959 publications. The findings showed that the use of various technologies, including computer-assisted audit techniques (CAATs), audit analytics, big data, artificial intelligence, robotic process automation, blockchain, and process mining, generally enhanced the effectiveness and efficiency of audit procedures, strengthened internal controls, and reduced errors and financial statement restatements, while simultaneously repositioning auditors as more strategic and data-driven partners. At the same time, the success of digital audit transformation was strongly influenced by technological infrastructure, data governance and security, organizational capabilities, leadership support, regulatory environments, and auditors’ individual competencies, indicating that digitalization was neither a neutral nor an automatic process. This study provides practical implications for audit firms, internal audit units, supreme audit institutions, and regulators in developing more targeted and sustainable digital audit strategies, while also proposing future research directions concerning the organizational and institutional dynamics of digital auditing.

ةيناسنلإا مولعلا The Role of the Governmental Accounting Information System in Achieving Internal Control Objectives: Evidence from Jordan

Strengthening Internal Financial Controls in U.S. Government Agencies Through Data Driven Monitoring Systems

The ever-growing complexity of public financial systems and constraints of the conventional systems of internal control have increased the necessity of more responsive and even smarter methods of oversight. The present study is a synthesis of multidisciplinary literature that would create a combined conceptual framework of how data-driven monitoring systems would improve the internal financial controls within US government agencies. This study adopts a structured narrative review approach, systematically identifying and synthesizing recent peer-reviewed literature (2020–2025) across accounting, information systems, and public administration. Based on the theory of internal control and innovations in the field of big data analytics, machine learning, and continuous audits, the review shows that the capabilities related to data enable changing the traditional control systems that are characterized by being immobile, reactive systems into dynamic and real-time governance systems that enhance the ability to detect risks, promote transparency, and hold accountable. The paper also defines the main institutional drivers, barriers to implementation and governance issues that influence adoption and outlines gaps in empirical verification and AI regulation that need more careful consideration. With this review bridging the accounting, information systems, and public administration perspectives, the review adds value to the theory by expanding the internal control to the area of digital governance and provides valuable contributions to the policymakers and practitioners. The results emphasize that the future of financial governance by the state relies upon the strategic incorporation of information-based surveillance along with strong institutional and ethical frameworks.

What is more profitable: full-time internal auditor or external auditor services

In the context of digital transformation, sanctions pressure and increased requirements for business transparency, audit organization issues are of strategic importance. Any audit today is not just an element of control, but an essential management tool that allows you to timely identify risks and weaknesses, increase the efficiency of processes, and ensure compliance with legislation. The article provides a comparative analysis of two main models - the creation of its own internal audit service (full-time employees) and the involvement of an external audit company (outsourcing). Key criteria were identified for choosing the optimal form depending on the size of the enterprise, the specifics of the activity, financial capabilities and strategic goals. Particular attention is paid to a comparative analysis of the economic efficiency, objectivity and independence of audit assessments, confidentiality of information and response to incidents. Recommendations are proposed on the choice of the form of organization of internal audit aimed at increasing the stability and competitiveness of the business entity.

The role of internal control systems in supporting external auditors in providing reasonable assurance on financial statements

This study aims to analyze the role of the internal control system in supporting external auditors in providing reasonable assurance regarding the fair presentation of financial statements. The reliability of financial statements is highly influenced by the effectiveness of the internal control system implemented by an entity, as such a system functions to minimize the risk of errors and fraud that may affect the quality of financial information. This study adopts a descriptive qualitative approach using a library research method. The findings indicate that an internal control system designed and implemented based on the COSO framework enhances the effectiveness of internal controls, improves the reliability of financial reporting, and reduces the risk of material misstatements. Furthermore, an effective internal audit function serves as a bridge between the internal control system and the external audit process. In accordance with International Standard on Auditing (ISA) 610, external auditors may rely on the work of internal auditors to modify the nature, timing, and extent of audit procedures, thereby improving audit efficiency without compromising the quality of audit evidence obtained. The study also reveals that effective internal controls are positively associated with the quality of external audit opinions. Companies with strong internal control systems are more likely to receive unmodified audit opinions, whereas deficiencies in internal controls increase the risk of material misstatements that may lead to modified audit opinions. Therefore, the relationship among internal control systems, internal audit, and external audit is synergistic in enhancing financial reporting quality, improving audit efficiency, and fostering the continuous improvement of internal control systems.

ENHANCING GOVERNMENT INTERNAL AUDITOR PERFORMANCE THROUGH COMPETENCE AND GOAL ORIENTATION

The role of internal auditors is crucial as an early warning system for violations or irregularities that indicate corruption, collusion, and nepotism, both in central and regional governments. Government internal auditors are expected to detect fraud early on that could harm state finances. However, in reality, the practice of corruption, collusion, and nepotism continues and is increasing. This raises questions about the effectiveness of government internal auditors. This study aims to examine and analyze the influence of competence and goal orientation on auditor performance. The study population consisted of auditors in Inspectorates throughout Riau Province, with 214 auditors selected through purposive sampling. The analytical method used in this study is Structural Equation Modeling (SEM). The novelty of this study is the incorporation of motivational goal orientation that psychologically actualizes auditors' technical capabilities, resulting in reliable performance improvements in high-risk environments. Public sector oversight needs to shift the focus of its capacity-building initiatives from merely developing technical skills to fostering a flexible and learning-oriented attitude.