The impact of digital transformation on improving internal audit performance: A field study on telecommunications companies in the Republic of Yemen

Abstract

This study aimed to examine the impact of digital transformation components—namely technological infrastructure, data automation and analytics tools, and cybersecurity—on the development of internal audit performance in telecommunications companies in the Republic of Yemen. To achieve this objective, the study adopted a descriptive–analytical approach. Primary data were collected through a questionnaire specifically designed for this purpose and distributed to a stratified sample of (180) respondents drawn from employees working in managements of internal audit, accounting, and information systems departments across four Yemeni telecommunications companies. The data were analyzed using simple and multiple regression analysis. The statistical results revealed a statistically significant effect at the significance level (α ≤ 0.05) of digital transformation components collectively on the development of internal audit performance, with this effect being positive and direct. The results also indicated a statistically significant effect of each digital transformation dimension individually on the development of internal audit performance. Furthermore, the findings showed that digital transformation components contribute to shifting the role of internal auditing from a traditional control-based role to a proactive advisory role grounded in comprehensive data analysis. The study concluded that digital transformation constitutes a fundamental pillar for enhancing internal audit performance and enabling it to keep pace with contemporary requirements. Accordingly, the study recommended that telecommunications companies invest in technological infrastructure, implement data automation and analytics tools, strengthen the digital competencies of internal auditors, and establish robust cybersecurity policies to ensure the efficiency and effectiveness of the internal auditing process.