The Impact of Using Information Technology in Internal Auditing on the Quality of Financial Report: A Field Study on a Sample of Economic Entities in Algeria
Year: 2025
Type: article
Study design: Observational Study
Abstract: This study aims to examine the impact of using information technology (IT) techniques in internal auditing on the quality of financial reporting in a sample of economic entities in Algeria.To achieve this objective, the research adopts a mixed-method approach, combining a questionnaire and semi-structured interviews to ensure a comprehensive analysis.Quantitative data were collected through a survey of 99 employees working in internal audit departments across 30 economic entities, while the qualitative dimension relied on interviews with three internal auditors to capture practical insights.Path analysis using the partial least squares structural equation modeling (PLS-SEM) approach in SmartPLS 4 was employed to test the hypotheses.The findings reveal a significant positive impact of IT use (particularly ERP systems and data analysis tools) on both internal audit effectiveness and the quality of financial reporting.However, the mediating role of internal audit between IT use and financial reporting quality was not supported.Furthermore, the absence of audit committees, limited management support, lack of advanced IT tools, and the failure of boards of directors to fully implement internal audit recommendations weakened the contribution of internal audit in enhancing financial reporting quality.The study recommends strengthening auditors' IT competencies, establishing audit committees, ensuring the execution of audit recommendations, and investing in modern technological tools to reinforce internal audit effectiveness and financial reporting quality.
DOI: 10.56334/sei/8.11.11
Authors: Akachat Hayet, Lakhal Fatima Zohra, Dafri Rima
Institution: Centre Universitaire de Mila
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4413781696