The Impact of Digital Transformation in Government Accounting Systems on the Efficiency of Internal Control from the Perspective of Government Accountants

Abstract

     This study aims to analyze the impact of digital transformation in governmental accounting systems on the efficiency of internal control, from the perspective of governmental accountants working at the Libyan Ministry of Finance, in light of the growing orientation toward modernizing public financial management and strengthening governance and accountability in the public sector. The study is motivated by the limited availability of empirical evidence clarifying the nature of the relationship between digital transformation and internal control efficiency in the Libyan governmental context, despite the relative expansion in the use of digital accounting systems.

     The study adopts a descriptive–analytical approach within a quantitative framework. Data were collected using a structured questionnaire developed based on contemporary literature and established internal control frameworks to measure the level of digital transformation in governmental accounting systems and the efficiency of internal control. The questionnaire was administered to a random sample of governmental accountants at the Libyan Ministry of Finance, comprising 83 valid responses. The validity and reliability of the instrument were verified using appropriate statistical techniques, with Cronbach’s alpha coefficients indicating high internal consistency.

     The descriptive results reveal that the level of digital transformation in governmental accounting systems is moderate with a tendency toward improvement, while the level of internal control efficiency remains moderate. Inferential analysis demonstrates a positive and statistically significant relationship between digital transformation and internal control efficiency, with digital transformation exhibiting a meaningful explanatory power in accounting for variations in internal control efficiency. The study concludes that digital transformation represents a key enabler for enhancing internal control efficiency in the governmental environment, provided that technical, organizational, and human enablers are adequately developed and that control mechanisms are adapted to the requirements of a digital environment.