The Impact of Digital Technology in Auditing and the Moderating Role of Organizational Culture on ESG Internal Audit Quality in Vietnamese Commercial Banks

  • Huy Hung Pham Hanoi University of Natural Resources and Environment
  • Thuy Ha Vu
Keywords: digital technology, ESG audit, organizational culture, commercial banks

Abstract

Amidst growing pressures for sustainable development, this study investigates the impact of digital technology on Environmental, Social, and Governance (ESG) internal audit quality within Vietnamese commercial banks. Addressing a critical gap in literature which has largely focused on financial audits and overlooked the interplay of technology and organizational context, this research specifically examines the distinct effects of four key technologies—Big Data Analytics (BDA), Robotic Process Automation (RPA), AI/Machine Learning (AIML), and Cloud-Based Platforms (CBP)—while also assessing the moderating role of organizational culture. Employing a quantitative approach, the study analyzed data from a cross-sectional survey of 327 audit professionals, including auditors, managers, and Supervisory Board members, using hierarchical multiple regression to test the proposed hypotheses. The results reveal a significant "implementation gap": foundational technologies like Big Data Analytics (β=.248) and Cloud-Based Platforms (β=.311) were found to positively and significantly enhance ESG audit quality, whereas more advanced technologies such as RPA and AIML showed no statistically significant impact. Crucially, a supportive organizational culture was found to act as a powerful amplifier, significantly strengthening the positive effects of BDA and CBP on audit quality. Consequently, the study concludes that a mere technological arms race is ineffective. The primary implication for Vietnamese banks is the need for a dual-pronged strategy: prioritize investment in foundational data analytics and collaborative cloud platforms while concurrently cultivating a data-driven, innovative, and collaborative organizational culture. This synergistic approach is essential for building robust ESG assurance capabilities and preparing for the future adoption of more advanced technologies.

Published
2025-11-17
Issue
Vol 7 (2025): ASEAN International Sandbox Conference
Section
Published Articles

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