DOI: https://doi.org/10.36719/2789-6919/55/123-127
Makhluqa Guluyeva
Azerbaijan University of Technology
Masters’ student
https://orcid.org/0009-0002-2360-9217
mehluqe@bk.ru
Modernization and Development of the Audit Function in the
Azerbaijan Industry Bank
Abstract
In the modern era, the banking sector acts as the most dynamic and risk-sensitive component of the global financial architecture, requiring the implementation of constantly improving internal control mechanisms. The primary purpose of writing this article is to scientifically and practically justify the necessity of modernizing the audit function using "Azerbaijan Industry Bank" (AIB) OJSC as a case study and to investigate the impact of digital transformation on banking supervision. During the research, it was determined that transitioning from traditional auditing methodology to artificial intelligence (AI), Big Data, and automated analytical systems significantly increases the financial stability and transparency of the bank.
The article comprehensively analyzes the integration of audit processes with risk management systems, the optimization of the internal control environment, and the application of ESG (Environmental, Social, and Governance) principles in audit examinations. The conducted analyses demonstrate that the innovative approaches implemented at AIB have not only minimized operational risks but also increased the decisiveness of the auditor's opinion in the strategic decision-making process. As a result of the research, it is emphasized that a technology-oriented audit system is the most important institutional factor strengthening the bank's competitiveness. Thus, the digitalization of the internal audit function and its full alignment with international standards (IIA) is the fundamental guarantee of sustainable development and financial security in the modern banking ecosystem.
Keywords: audit function, Azerbaijan Industry Bank, digital transformation, risk management, artificial intelligence, ESG principles, internal control, corporate governance