The Impact of Applying Digital Transformation on Internal Audit and Financial Inclusion Achievement – A Survey Study in Egyptian Banks

The study aims to explore the application of digital transformation technology in banking institutions and determine the impact of that application on two main axes, the first is the internal audit activity and the second is financial inclusion within the Egyptian commercial banks and its reflection on achieving sustainable development in accordance with the vision of Egypt 2030. The study sought to achieve this goal by formulating two main hypotheses. The first hypothesis states that “there is no significant effect of applying digital transformation mechanisms in banks on the internal audit activity” and the second hypothesis states that “there is no significant effect of applying digital transformation mechanisms in banks on achieving financial inclusion.” The study relied on the inductive approach by analyzing previous studies and opinions, in addition to preparing a field study to collect data through statistical analysis of the data of 150 survey lists obtained from the study sample, which consisted of four categories: internal audit managers, internal auditors, information technology employees in commercial banks, and academics in Egyptian universities. The results showed a strong impact of the application of digital transformation mechanisms in banks on the development of internal audit procedures. They demonstrated the existence of a role for the application of digital technology in the performance of banking transactions and the use of modern technologies to provide banking services in achieving the financial inclusion in Egyptian banks, which in turn is reflected in achieving sustainable development. The current study is one of the rare studies that deals with discussing the impact of the application of digital technology on internal audit activity as well as financial inclusion in Egyptian banks, which focused on governmental commercial banks. It contributes to academic field by presenting results and recommendations to guide researchers in their studies and regulatory bodies for the accounting and auditing professions in issuing their instructions. It also opens the way for future research by completing what the study started. The study recommended the necessity and importance of relying on digital transformation technology to achieve sustainable development goals, and that the accounting and auditing professions should develop their methods and tools to keep pace with modern technological developments to improve competitiveness and continuity.