Internal Controls in the Digital Age: Simplification or Complication?

Résumé

This article delves into the transformative impact of digital technologies on the effectiveness of internal controls within organizations. By examining how tools like process automation, artificial intelligence (AI), and Big Data can both enhance and complicate internal control procedures, we draw on key theories of risk management, technology adoption, and corporate governance. Our analysis highlights the benefits of integrating digital technologies, such as reducing human errors, increasing the speed of verification processes, and enabling continuous real-time monitoring of organizational activities. These technologies also offer advanced data analysis capabilities, facilitating the early detection of anomalies and suspicious behaviors, which supports proactive risk management by identifying and mitigating potential threats before they escalate. However, while digital technologies can significantly strengthen internal controls, they also introduce new complexities. Organizations must address challenges such as data security, privacy protection, and the management of technological incidents. To ensure successful adoption, we recommend implementing continuous employee training, establishing robust security policies, and using integrated and compatible technological solutions. Notably, this study fills a gap in existing research by providing a comprehensive analysis of the impact of digital technologies on internal controls. It offers practical recommendations for organizations seeking to leverage these technologies while minimizing their risks, thereby optimizing monitoring, risk management, and data security.