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 (Covid-19), 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 (Covid-19). 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.