Digital competence to internal auditing capabilities: The mediating role of metaverse utilization in Jordanian SMEs

Immersive digital technologies have revolutionized internal auditing, especially for resource-constrained “small and medium-sized enterprises (SMEs)”. Digital competence is widely recognized as a prerequisite of today’s auditor, however there is limited evidence on how it can assist internal auditing in high-tech digital settings. The research examines metaverse adoption as a mediating variable between digital competence and internal auditing capabilities in Jordanian SMEs using the Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), and contingency theory. The survey data from internal auditors and accountants was analyzed using “Partial Least Squares Structural Equation Modelling (PLS SEM)”. Digital competence strongly affects metaverse utilization, metaverse utilization improves internal auditing capabilities, and metaverse utilization partially mediates the competence–capability link. The results show that the metaverse allows auditors operationalize digital capabilities to improve internal control, fraud detection, and audit quality. The research offers theoretical and practical advice to digitally transforming SME management, auditors, and policymakers.