THE SITUATION OF AUDIT AND INTERNAL CONTROL EFFICIENCY THROUGH DIGITIZATION: EVIDENCE FROM THE REPUBLIC OF MOLDOVA

This scientific approach focuses on current trends in internal audit activity and internal control procedures in the context of the need to streamline the economic activity of public institutions in the Republic of Moldova through the use of digitalization. Based on the conceptual content analysis of the 2024 Consolidated Report, the degree of restructuring of processes, information flows and assurance mechanisms in the public sector under the influence of digitalization and the new applicable regulatory framework is investigated. Findings show that Moldovan public entities still rely heavily on manual procedures, fragmented data sources and parallel reporting systems. Digitalization provides the structural interface needed for alignment: unified data environments, automated controls, real-time monitoring and audit analytics. These elements improve the consistency of IC assessments, strengthen monitoring in the first and second lines of defence and enhance internal audit ability to perform evidence-based and risk-focused engagements. The proposed “Digital Triangle” model illustrates how data, automated controls and assurance processes can function as an integrated ecosystem that supports continuous monitoring and continuous auditing. Finally, we argue that the efficiency of a public institution's activity depends largely on the policy and attitude of those responsible for governance towards macroeconomic policy, sustainable development, corporate culture and the performance evaluation system.