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Rubén Álvarez-Foronda1, Carmen De-Pablos-Heredero1, José-Luis Rodríguez-Sánchez1

  • 1Departamento de Economía de la Empresa (ADO), Economía Aplicada II y Fundamentos del Análisis Económico, Facultad de Ciencias de la Economía y de la Empresa, Universidad Rey Juan Carlos, Madrid, Spain.

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Internal audit departments must embrace technological advancements, particularly data analytics, to enhance their effectiveness. Investing in modernizing processes leads to superior organizational results compared to outdated methods.

Keywords:
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Area of Science:

  • Business and Management
  • Information Technology

Background:

  • Internal audit departments are crucial for corporate governance, organizational culture, and climate.
  • Traditional audit processes may not fully leverage modern technological opportunities for efficiency.

Purpose of the Study:

  • To explore the significance of internal audit in contemporary organizations.
  • To identify how new technologies can improve internal audit effectiveness and efficiency.
  • To propose a framework for integrating data analytics into internal audit functions.

Main Methods:

  • An exhaustive review of existing literature was conducted.
  • The concepts of internal audit and data analytics were synthesized.
  • A framework for implementing data analytics in internal audit was developed.

Main Results:

  • Companies adapting processes to technological change achieve better outcomes.
  • Organizations maintaining obsolete procedures risk falling behind.
  • Data analytics presents significant opportunities for enhancing audit processes.

Conclusions:

  • Technological evolution, specifically data analytics, is essential for modern internal audit.
  • Adoption of data analytics increases the effectiveness and efficiency of audit functions.
  • Internal audit departments need to proactively integrate new technologies to remain relevant and impactful.