IMPACT OF TECHNOLOGICAL ADVANCEMENTS ON AUDIT AND INTERNAL CONTROLS MECHANISM IN NIGERIAN BANKS.

Badmus Oladipupo  IBRAHIM; Dr. Omowunmi Jumoke  OGUNLEYE

Badmus Oladipupo IBRAHIM University of Lagos
Dr. Omowunmi Jumoke OGUNLEYE University of Lagos

Keywords: Audit Effectiveness, Internal Control Mechanisms, Nigerian Banks , Technological Advancements , Technology Adoption

Abstract

This study examines the impact of technological advancements on audit practices and internal control mechanisms in Nigerian banks. The increasing integration of digital technologies such as artificial intelligence, data analytics, and automated systems has significantly transformed the operational and control environment within financial institutions. Despite these developments, concerns remain regarding the extent to which technological adoption enhances audit effectiveness and strengthens internal control systems, particularly in emerging economies. The study adopts a quantitative research design based on a deductive approach, utilising primary data collected through structured questionnaires administered to key stakeholders, including audit managers, internal control officers, and IT professionals in Nigerian Deposit Money Banks. A total of 180 valid responses were analysed using descriptive statistics and regression analysis. The findings reveal that technological advancements have a significant positive effect on internal audit practices and internal control mechanisms. Specifically, the results indicate that increased adoption of digital technologies enhances audit efficiency, improves risk detection, and strengthens control systems through real-time monitoring and automated processes. The study also finds a strong interrelationship between audit practices and internal control effectiveness, suggesting that improved audit functions contribute to stronger governance frameworks. These findings are consistent with theoretical expectations from Agency Theory, Resource-Based View, and Technology Acceptance Model. The study concludes that technological advancement is a critical driver of audit quality and internal control effectiveness in Nigerian banks. It recommends increased investment in advanced technologies, capacity development, and improved IT governance frameworks to maximise the benefits of digital transformation while mitigating associated risks.