The study aimed to identify the impact of digital transformation technology on improving the quality of internal auditing. The theoretical aspect of the study relied on a descriptive and analytical approach. The field study involved distributing a questionnaire to a sample of employees from the financial departments and the Internal Audit Department at the Central Bank of Libya. The study concluded that there was a statistically significant positive impact of digital transformation on the quality of financial reports. It also concluded that there was a statistically significant positive impact of digital transformation on the quality of internal auditing performance. The study recommended a number of recommendations, most notably enhancing the digital infrastructure of financial institutions to ensure the efficient implementation of digital transformation technologies, training and qualifying internal auditors on modern digital tools such as Blockchain, artificial intelligence, and cloud computing, and developing robust information security policies to address the cyber threats associated with digital transformation................ Keywords:............. Digital Transformation, Internal Audit, Artificial Intelligence, Blockchain, Cloud Computing.