STAP International Journal of Accounting and Business Intelligence

ISSN: 3105-3726

Assessing the Nexus between Digital Transformation and Internal Audit Quality: A Study of Industrial Companies on the Amman Stock Exchange

by 

Ahmad Omar Hardan

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Published: 2024/04/21

Abstract

This study investigates the impact of digital transformation technologies on the quality of internal auditing. Specifically, it examines the influence of three core technological pillars Blockchain, Artificial Intelligence (AI), and Big Data Analytics (BDA) on the perceived quality of the internal audit function. Adopting a quantitative, descriptive-analytical approach, the research gathered data through a structured questionnaire administered to 208 internal audit professionals working in industrial firms listed on the Amman Stock Exchange (ASE) in Jordan. The data were analyzed using the Statistical Package for the Social Sciences (SPSS), employing multiple regression analysis to test the study's hypotheses. The findings reveal a statistically significant and strong positive relationship between the adoption of digital transformation technologies and the quality of internal auditing, with these technologies collectively explaining 82.8% of the variance in audit quality. Further analysis of the individual technologies indicates that Artificial Intelligence has the most substantial impact, followed closely by Big Data Analytics, while Blockchain also exerts a significant positive influence. The study concludes that the strategic integration of these advanced technologies is no longer optional but essential for enhancing assurance, improving operational efficiency, and elevating the strategic contribution of the internal audit function. A primary recommendation is for industrial firms to formulate and implement a comprehensive digital strategy for their internal audit departments, focusing on investment in technological infrastructure and the critical upskilling of audit professionals to navigate the complexities of the modern business environment.

Keywords

Digital TransformationInternal Audit QualityBlockchain TechnologyArtificial IntelligenceBig Data AnalyticsAmman Stock Exchange

Assessing the Nexus between Digital Transformation and Internal Audit Quality: A Study of Industrial Companies on the Amman Stock Exchange is licensed under CC BY 4.0CCBY

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