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THE ROLE OF TECHNOLOGY IN MODERNIZING INTERNAL AUDIT
PRACTICES IN BUDGETARY MANAGEMENT
Xamraliyev Sherzod Zokirjon o’g’li
Banking and finance academy of the Republic of Uzbekistan
https://doi.org/10.5281/zenodo.14731494
Technology is transforming internal audit practices in budgetary
management, addressing the challenges of traditional methods and enhancing
efficiency, accuracy, and transparency. As budgets grow more complex and
regulatory demands increase, modern tools are enabling organizations to
streamline audit processes, improve oversight, and ensure the effective use of
public resources.
Data analytics has emerged as a critical tool, allowing auditors to process
and analyze large datasets to uncover patterns, anomalies, and trends. This
capability improves decision-making and helps identify inefficiencies or risks in
budgetary processes. Similarly, artificial intelligence (AI) and machine learning
(ML) are automating repetitive tasks such as transaction monitoring, compliance
checks, and risk assessments. These technologies not only save time but also
enable proactive identification of potential risks.
Robotic Process Automation (RPA) is another game-changer, simplifying
routine tasks like document verification and data entry. By reducing manual
intervention, RPA minimizes errors and accelerates audit processes, freeing up
auditors to focus on strategic activities. Meanwhile, blockchain technology
provides secure and tamper-proof record-keeping, ensuring transparency and
accountability in financial transactions. Its ability to create immutable audit
trails makes it a valuable tool for verifying compliance and detecting
irregularities.
Cloud computing has revolutionized the way audit teams collaborate,
offering real-time access to data and centralized platforms for managing
complex budgetary information. Cloud solutions enhance scalability, making it
easier to adapt to evolving financial and regulatory requirements. Continuous
auditing tools further modernize the audit process by enabling real-time
oversight of transactions and activities, allowing organizations to detect and
address issues immediately.
The benefits of integrating technology into internal audits are significant.
Automation and advanced tools enhance the accuracy of audits, reduce human
errors, and improve compliance with regulations. Real-time monitoring and
predictive analytics enable organizations to manage risks effectively and take
SCIENCE AND INNOVATION IN THE
EDUCATION SYSTEM
International scientific-online conference
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timely corrective actions. Additionally, these technologies reduce costs by
streamlining workflows and optimizing resource allocation. Transparent audit
trails created by blockchain and secure platforms build trust among
stakeholders, fostering greater accountability in budgetary management.
However, the adoption of technology in internal audits is not without
challenges. High implementation costs, the need for skilled personnel, and
cybersecurity risks are some of the barriers organizations face. Integrating
advanced tools with legacy systems can also be a complex and resource-
intensive process. Despite these challenges, the potential of technologies such as
AI-powered audits, predictive analytics, and RegTech solutions continues to
grow, paving the way for more efficient and effective internal audits.
Looking ahead, the future of internal audits will be shaped by continued
advancements in technology. AI will automate more complex audit processes,
while blockchain will become a standard tool for secure and transparent record-
keeping. Predictive analytics will enable auditors to forecast risks and trends
with greater precision, and collaboration with FinTech and GovTech providers
will drive innovation in audit practices.
By embracing these technological advancements, organizations can
modernize internal audit practices, ensuring efficient budgetary management,
greater transparency, and strengthened governance. In an increasingly complex
financial landscape, technology is no longer optional but essential for effective
internal audits.
List of literature:
1.
Diamond, J. (2002). “The Role of Internal Audit in Government Financial
Management: An International Perspective.” International Monetary Fund.
2.
PwC. (2018). “State of the Internal Audit Profession Study: Moving at the
Speed of Innovation.”
3.
Deloitte. (2020).“Advancing Analytics in Internal Audit: Redefining Risk
Assessment.”
