Remote Auditing : An Alternative Approach to Face the Internal Audit Challenges During The COVID-19 Pandemic

Abstract

The research aims to define the roles that the internal audit activity can play in Egyptian business enterprises to confront the crisis of the spread of the Corona virus , and discover the challenges that the internal auditors may face while performing their work during the period of the epidemic. The research also aims to study the factors that should be taken into consideration when preparing and implementing the internal audit plan and reporting on the audit findings during the Corona virus (COVID-19) crisis, in addition to suggesting an alternative approach to facilitate the performance of internal audit tasks efficiently during this period, which is the remote auditing approach.To achieve these goals, the research relied on using the positive approach through the use of the deductive approach to analyze previous studies related to the research topic and derive the research hypotheses, in addition to using the inductive approach to test the validity of the research hypotheses in the real practice in the Egyptian business environment. This was done through a field study conducted on a sample of 95 individuals, which included three categories: the academics represented by the professors of accounting and auditing in the faculties of commerce in Egyptian universities, in addition to the members of the audit committees and the internal auditors of some joint stock companies listed on the Egyptian Stock Exchange. Statistical tests were used commensurate with the nature of the data collected.And based on the results of the statistical hypothesis test, the first hypothesis was accepted, which states that there is agreement between the study sample groups about the importance of the roles that the internal audit activity can play in business enterprises to confront the crisis of the Corona virus . Also, the second hypothesis was accepted , Which states that there is agreement between the study sample groups about the challenges that may face the internal auditors during the Corona virus (Covid-19) pandemic, as well as the third hypothesis which states that there is agreement between the study sample groups about the factors that should be considered when preparing and implementing the internal audit plan and reporting on the audit results during the Corona virus (Covid-19) crisis. Also, based on the results of the field study, it becomes clear the importance of developing the method of performing the internal audit activity during the Corona pandemic crisis, through applying modern audit methods, such as the remote audit approach, which relies on using information and communication technology to perform internal audit tasks efficiently , which enables the internal audit activity to provide the roles assigned to it and meet the needs of stakeholders , and overcome the challenges facing the internal auditors during the period of the epidemic on the other hand.

Sustaining Remote Auditing in Zimbabwe during the COVID-19 Era

“…Whilst Serag & Daoud (2021) in a conducted study on internal audit challenges agreed with the findings of Teeter et al (2010), they added that for efficient and effective results, the audit team has to be competent in the use of accessible and user-friendly technical tools. The duo also observed that diverse skills of the internal audit team such as project management, financial experience, data analytics, and a thorough knowledge of enterprise systems and operations could balance up the different activities of the firm.…”

Pengaruh Audit Jarak Jauh (Remote Audit) dan Jumlah Penugasan Auditor terhadap Kualitas Audit: Studi Empiris pada Perwakilan BPKP Provinsi Sumatra Barat

“…Prosedur audit jarak jauh (remote audit) hampir sama prosesnya dengan audit konvensional, namun pada audit jarak jauh (remote audit) ini menggunakan sarana elektronik dalam mendapatkan dan mengumpulkan informasi audit (Serag, 2021). Dalam IAPI (2020), mejelaskan bahwa tahapan yang menjadi pembeda dalam melakukan audit jarak jauh (remote audit), ialah pada perubahan atas modifikasi cara kerja auditor.…”

“…Audit jarah jauh (remote audit) diukur dengan indikator sebagai berikut: prosedur remote audit, tantangan dan keterbatasan yang dihadapi, efektifitas dan efisien, digitalisasi audit (Serag, 2021dan Zhafirah, 2022.…”

Remote Quality Management System Audit. Auditors’ and Auditees’ Perspective and Lessons Learned

“…Conducting an audit in a remote form is not a new phenomenon and does not only concern the period of the pandemic. Even before the global pandemic, the accounting and auditing profession faced the need to revise the strategy and methodology they use to perform activities, as well as introduce a complex process of digitization and digital transformation (Serag & Daoud, 2021a, 2021b. Audits of this type have long been referred to as 4.0 audits.…”

“…According to Teeter et al (2010), who refer to the financial audit, the term "remote auditing" means the process by which auditors couple information and communication technology (ICT) with data analytics to assess and report on the accuracy of financial data and internal controls, gather electronic evidence, and interact with the auditee, independent of the physical Pobrane z czasopisma Annales H -Oeconomia http://oeconomia.annales.umcs.pl Data: 09/01/2023 06:36:47 U M C S location of the auditor. As Serag and Daoud (2021b) convince, it is "the method of conducting an audit remotely, using electronic methods such as video conferencing, email and telephone to obtain audit evidence, just like auditors would during an onsite audit". They add that the overall aim is to evaluate this evidence objectively to determine the extent to which the audit criteria has been fulfilled.…”