Impact of the electronic internal auditing based on IT governance to reduce auditing risk

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Abstract

This paper analysed the effect of electronic internal auditing (EIA) based on the Control Objectives for Information and Related Technologies (COBIT) framework. Organisations must implement an up-to-date accounting information system (AIS) capable of meeting their auditing requirements. Electronic audit risk (compliance assessment, control assurance, and risk assessment) is a development by Weidenmier and Ramamoorti (2006) to improve AIS. In order to fulfil the study’s objectives, a questionnaire was prepared and distributed to a sample comprising 120 employees. The employees were financial managers, internal auditors, and workers involved in the company’s information security departments in the General Company for Electricity Distribution (GCBED) of Baghdad, owned by the Iraqi federal government. The Statistical Package for the Social Sciences (SPSS) software was employed to analyse the data and hypotheses. The study concluded that there is a substantial effect on the performance of EIA depending on the COBIT framework in reducing electronic audit risk in GCBED. According to the findings, additional research should be undertaken to improve efficiency, accounting control efficiency, and asset protection programs to lessen audit risk.

Keywords: Electronic Internal Auditing, Electronic Audit Risk, COBIT

Authors’ individual contribution: Conceptualization — S.H.H.A.; Methodology — H.H.F.; Formal Analysis — H.H.F.; Writing — Original Draft — S.H.H.A.; Writing — Review & Editing — S.H.H.A. and H.H.F.; Visualization — H.H.F.; Supervision — S.H.H.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: H1, H7, M410, M420, M480

Received: 22.03.2022
Accepted: 06.02.2023
Published online: 08.02.2023

How to cite this paper: Al-Taee, S. H. H., & Flayyih, H. H. (2023). Impact of the electronic internal auditing based on IT governance to reduce auditing risk. Corporate Governance and Organizational Behavior Review, 7(1), 94–100. https://doi.org/10.22495/cgobrv7i1p9