The impact of internal auditing on strategic vigilance in economic institutions

SONELGAZ case study

Abstract

This study investigates the impact of internal audit on the practice of strategic vigilance in economic institutions. Internal audit holds a prominent position in most institutions due to its association with the highest levels of management. It functions not only as a supervisory tool but also as an independent and objective source of confirmation and advisory services, ultimately contributing to the institution's value creation. In the face of rapid global developments and advancements in research and communication technology, economic institutions strive to stay ahead by enhancing their information programs and implementing vigilance systems across all sectors. These efforts lead to improved profitability for customer services. Reviewing information systems is a crucial modern activity that ensures the system's effectiveness and credibility. To achieve this objective, a descriptive-analytical approach was employed. A scientifically designed questionnaire was distributed to the study population, which comprised a sample of institutions from the National Electricity and Gas Distribution Company in western Algeria. The researcher's key finding is that internal audit plays a critical role in assessing the effectiveness of internal audit operations on enhancing and utilizing strategic vigilance. Strategic vigilance is considered an essential mechanism for improving service quality and providing necessary information for optimal organizational decision-making.