The influence of digitalization of internal audit efficacy in the Malaysian public sector

This study examined the influence of digitalization on internal audit efficacy in the Malaysian public sector.Specifically, the study focused on four main factors; technological infrastructure, organisational structure, organisational strategy, and auditors' skills and knowledge.Grounded in the Socio-technical Theory, this research highlighted the interaction between technical and social sub-systems in shaping the effectiveness of internal audit functions.Data were collected using a structured questionnaire distributed to internal auditors across Malaysian ministries, with a total of 132 usable responses obtained.Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed to test the proposed relationships.The findings indicated that technological infrastructure and organisational strategy had a significant positive influence on internal audit efficacy.However, organisational structure and auditors' skills and knowledge showed non-significant relationships with internal audit efficacy in the current public sector context.These results suggested that while digital tools and strategic alignment were important in enhancing audit performance, existing structural arrangements and skill development initiatives may not yet fully support digital transformation efforts.This study provided empirical evidence from the Malaysian public sector and contributes to the limited literature on digitalization and internal audit efficacy.The findings offered useful insights for policymakers and public sector managers in strengthening internal audit functions through appropriate digital investments and strategic planning.