The Impact of Emerging Technologies on Internal Audit Functions

Rozanne Janet Smith (), Evelinah Maredi () and Phumzi Mthimunye
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Rozanne Janet Smith: University of Johannesburg
Evelinah Maredi: University of Johannesburg
Phumzi Mthimunye: University of Johannesburg

A chapter in Impacting Society Positively Through Technology in Accounting and Business Processes, 2025, pp 1115-1137 from Springer

Abstract: Abstract Emerging technologies offer significant benefits to internal auditing, however internal audit functions (IAFs) face challenges in keeping up with rapid digital transformation. This study investigated the barriers that impede IAF’s adoption of emerging technologies. This aided considerably in determining how the barriers affected the IAF’s overall effectiveness. A qualitative research method is applied with a questionnaire design, selecting respondents from South African public research councils with an in-house IAF. Data was collected through a structured questionnaire directed at Chief Audit Executives (CAEs), responsible for IAF performance. The findings of the study indicate that although councils have embraced emerging technologies, their IAFs lack technological innovation because of inadequate support from the audit committee, a lack of support from top management, and an unproductive IAF. Technological expertise, financial constraints, modifications to the internal environment, training, knowledge, change management, and the age of the technology infrastructure are some of the barriers contributing towards a lack of adoption. By addressing these barriers, IAFs will be better equipped to integrate emerging technology and function more effectively. This study fills the gap in the existing body of knowledge pertaining to the South African public sector by highlighting the essential organizational components that are necessary for IAFs to effectively incorporate digitalization into their internal auditing process. The findings derived from empirical research offer insightful discussions for IAF leaders to initiate the process of digitizing internal audits with the objective of generating value for various stakeholders.

Keywords: Internal audit function; Effectiveness; Technology; Emerging technology; Senior management; Audit committee; Barriers (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-3-031-84885-8_60

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