The Impact of Employing Artificial Intelligence Techniques in Internal Auditing on Reducing Information Technology Risks and Improving the Quality of Financial Performance: An Applied Study in Iraqi Private Banks

Abstract

This research aims to examine the impact of employing artificial intelligence techniques in internal auditing on reducing information technology risks and improving the quality of financial performance in Iraqi private banks. This issue has become increasingly important in light of the growing reliance on electronic and digital systems in banking operations and the associated technical and control risks. The research adopted the descriptive analytical approach in presenting the theoretical framework, in addition to the applied approach through designing a questionnaire distributed to a purposive sample of employees in selected Iraqi private banks. The sample included employees working in internal auditing, information technology, risk management, accounting, and internal control departments.

     The research found that employing artificial intelligence techniques in internal auditing contributes to developing control work within banks by enhancing the internal auditor’s ability to analyze data, detect errors and deviations, support continuous auditing, and predict potential risks. The results also showed that these techniques help reduce information technology risks, particularly those related to data security, unauthorized access, system failures, and the loss or leakage of information. Moreover, the findings indicated that the use of artificial intelligence has a positive impact on the quality of financial performance by improving the accuracy of financial reports, reducing errors, and accelerating financial and accounting operations.

    The research concluded that artificial intelligence is not a substitute for the internal auditor; rather, it is a supportive tool that enhances the auditor’s efficiency and effectiveness in performing control tasks. The research recommends that Iraqi private banks should adopt artificial intelligence techniques in internal auditing, develop their technological infrastructure, qualify human resources, and strengthen integration among internal auditing, information technology, and risk management departments, in a way that contributes to improving the quality of financial performance and reducing technical risks in the banking environment