The purpose of this research is to investigate the impact of using big data as an analytic tool to improve audit quality and prevent fraud; all while using modern technology to enhance audit processes and supervisory functions in Iraq's banking system. A Descriptive Analytic Research Approach was used to analyze the relationship between each variable studied and measure its' effects upon the Iraqi Banking System. To gather data a structured questionnaire was distributed to a sampling population of 120 employees working for Iraqi Banks. It was found that there are statistical impacts from Big Data Analytics (BDA) upon both Audit Quality and Fraud Detection. However, it was also discovered that BDA had a greater impact upon Fraud Detection than upon Audit Quality; indicating the potential to utilize advanced technologies to identify fraud risks and detect patterns of fraudulent activity earlier than traditional methods. Recommendations of this study include developing and enhancing digital systems of Iraqi Banks to support their transition into Digital Transformation, increasing usage of modern data analytics software by auditors/supervisors in auditing/oversight processes and expanding education/training programs for accounting and auditing professionals to increase the effectiveness of financial oversight processes, reduce the risk of fraud within the banking system and protect depositor interests.