The important role of information technology and internal auditing in risk management: evidence from Greece

George Drogalas, Michail Pazarskis, Grigorios Lazos and Konstantinos Golidopoulos

Abstract

An organization’s activities are greatly aided by information technology (IT), which also speeds up corporate operations. Today, internal auditing is frequently conducted using IT, and this trend will continue as more and more businesses switch to paperless systems. This paper assesses and documents how information systems contribute to internal audit, so as to adequately address any risks that may arise in the context of the modern business environment. A survey was conducted as part of the research, and a pertinent questionnaire that was sent out to Greek businesses served as a research tool. The survey data were also subjected to regression analysis, a statistical technique. The study’s findings show that when businesses and internal auditors use IT properly the internal audit process becomes more effective, quicker and more affordable, resulting in more effective management of the risks relating to business operations and, by extension, greater success of business entities in what is a competitive modern environment.