DOI: https://doi.org/10.36719/2706-6185/54/133-138
Nigar Ashumova
Baku Business University
Master’s student
https://orcid.org/0009-0007-3811-909X
ashumovanigar943@gmail.com
The Role of Digitalization in the Internal Audit Process of Banks
Abstract
Ensuring the stability of the financial sector is one of the key priorities of the modern economy. The presence of effective audit mechanisms is of particular importance for proper risk management and maintaining transparency in financial operations within the banking system. Audit activity, in addition to serving as a control tool that assesses a bank’s compliance with legal, financial, and operational frameworks, also functions as a strategic mechanism that optimizes management processes. Internal audit, in particular, plays a crucial role in the early detection of risks, strengthening internal control systems, and providing informational support for decision-making processes.
Digitalization, as one of the primary directions of technological transformation in the banking sector, has led to fundamental changes in the organization of internal audit as well.
Whereas traditional audit methods rely mainly on sampling checks and manual analysis of documentation, digital audit enables automated monitoring of entire operational flows and comprehensive analysis of large databases.
The purpose of this scientific article is to explain the theoretical foundations of the audit concept, systematize the main types of audits, thoroughly outline the essence and importance of internal audit in the banking sector, and analyze the impact of digitalization on the organization and efficiency of internal audit processes from a scientific and practical perspective. The research results indicate that the application of artificial intelligence technologies, big data analytics, and automated control platforms has transformed internal audit from a mere supervisory function into a strategic analytical mechanism.
Keywords: audit, internal audit, banking sector, digitalization, financial control, risk management, big data, artificial intelligence