The Transformation of Internal Audit in the Age of Digitalisation: A Model and Methodology for Assessing Effectiveness

Abstract

Purpose. The article is devoted to the comprehensive study of the transformation of internal audit in the context of global economic digitalization and the implementation of the new Global Internal Audit Standards (IIA, 2024). The primary goal is to develop a robust conceptual model and a multi-component methodology for assessing the effectiveness of internal audit, considering the shift from traditional compliance-based approaches to proactive, risk-oriented, and technologically advanced management support. Methods. The study employs a diverse set of scientific methods to ensure the reliability of the results: systems analysis, comparative analysis, and synthesis are used to generalize existing theoretical approaches and identify gaps in the current regulatory framework. Logical-structural modeling is applied to create a conceptual model of internal audit transformation. Finally, a specialized scoring method is used to construct an integral effectiveness assessment methodology based on quantifiable indicators across four strategic dimensions of corporate activity. Results. The research systematizes the fundamental differences between traditional and modern internal audit models, emphasizing the transition from retrospective verification to real-time continuous monitoring. A conceptual model has been developed that illustrates how external factors (digitalization, IIA standards, economic uncertainty) interact with internal organizational factors to redefine the role of internal audit as a strategic element of corporate governance. The core of the article is the proposed "EVA" (Effectiveness of Internal Audit) integral indicator, calculated as the sum of four components: the level of internal control (VK), the effectiveness of risk management (RM), the degree of digital transformation (CT), and the quality of corporate governance (KU). The methodology includes a detailed 10-point scoring system for each component, allowing organizations to classify their internal audit performance into four levels: High (32–40 points), Sufficient (24–31), Satisfactory (16–23), and Unsatisfactory (below 15). Conclusions. It is demonstrated that the effectiveness of internal audit in a digital economy is no longer a static metric but a result of systemic interaction between organizational maturity and technological adoption. The proposed methodology provides a practical tool for identifying "bottlenecks" in the management system, such as a lack of automated data analytics or insufficient independence from executive management. By applying this integrated approach, enterprises can enhance their risk resilience, ensure compliance with international auditing standards, and increase the overall transparency of their financial and operational information.