Digital transformation of internal audit activities in international corporations

Abstract

The purpose of the article is to study the processes of digital transformation in internal audit within international corporations, their advantages and implementation challenges. To achieve the set goal, a set of scientific methods was used. The generalization method was used to systematize international experience in implementing digital technologies in internal audit and to draw conclusions and formulate recommendations. The comparison method was used to identify common and distinctive features of the application of technological solutions in different organizations. The structural-functional analysis method enabled us to examine the internal organization of digital audit systems and the roles of their key technological components. The system approach provided the opportunity to consider the digital transformation of internal audit as a complex dynamic system of interconnected elements: data analysis technologies, artificial intelligence, robotic process automation, cloud platforms and continuous monitoring systems. Results. The paper analyses key technologies that are shaping the transformation of internal audit functions in the context of the digitalization of the global economy: the use of artificial intelligence and machine learning for predictive risk assessment, robotic automation of routine processes, cloud platforms for centralized risk management, and continuous monitoring systems. The benefits of digital modernization are identified, including improved risk detection capabilities through proactive identification and real-time monitoring, as well as resource optimization through automation of evidence collection and analytics. At the same time, critical implementation challenges are identified, including cybersecurity risks, gaps in staff competence, and the complexity of complying with data confidentiality requirements in multiple jurisdictions. Based on an analysis of international experience, recommendations for successful digital transformation are formulated, including the need for comprehensive change management strategies supported by corporate management, multi-format training programs for staff, and careful selection of technologies taking into account their integration and scalability capabilities. Conclusions. It has been established that the successful digitalization of internal audit depends on a combination of advanced technologies, effective change management and development of staff competencies to work with new digital tools. The implementation of best practices in digital transformation within internal audit contributes to increasing its efficiency, improving risk identification, and transforming the audit function into a strategic business partner in the global digital environment.