The Evolution and Impact of Digital Transformation on Internal Audit and Managerial Control in Public Institutions

This paper explores how digital transformation has changed the way internal audit and internal management controls are conducted in public institutions. From traditional audit methods to new technology-based methods, mainly driven by the development of artificial intelligence (AI) and blockchain technologies, they greatly improve the depth of analysis and reduce the need for manual work. This aspect allows the automation of everyday tasks as well as the most complex ones, where large data series are analysed, audits become more transparent and efficient. The purpose of the research is to evaluate how prepared the professionals from public institutions are to move from manual to digital work, as well as to identify the main challenges encountered in the implementation of these technologies. The objectives consist of evaluating the progress of the transition to digital work in public institutions in Romania and identifying the obstacles to a successful adoption. The methodology includes reviewing the specialised literature and conducting quantitative surveys of staff in audited public institutions. Based on these ideas, the paper presentation attempts to understand the advantages and challenges to digital transformation that the public audit may face. Finally, the digital transformation represented an important and helpful aspect in the internal audit, but it is necessary to overcome the challenges to obtain these benefits in public institutions. The paper emphasises useful aspects of the use of digital technologies in public audit: improving audit capabilities and addressing the challenges of applying new technologies to existing systems.