The Impact of Digital Audit Technology and Auditor Competence on Internal Audit Effectiveness

Abstract

This study empirically examines how digital audit technology and auditor competencies influence the effectiveness of internal audit in Regional-Owned Enterprises (BUMD) and the Cirebon City Inspectorate. It is grounded in Agency Theory, which emphasizes the synergistic role of technology and human resource capabilities in enhancing oversight functions. The study uses a quantitative, associative design. Primary data were collected via a questionnaire administered to 45 respondents using a census technique and analyzed using multiple linear regression in SPSS. The results indicate that, when considered individually, the use of digital audit technology does not significantly affect the effectiveness of internal audits; in contrast, auditor competencies have a positive and significant effect. However, when considered together, both variables have a significant effect on the effectiveness of internal audits. These findings indicate that digital audit technology is not yet optimal without adequate auditor competencies. This study is important because it provides empirical evidence that the effectiveness of internal audits in the local public sector is determined by the integration of digital information and the quality of human resources, thereby laying the foundation for strengthening technology-based oversight policies.