An XAI-Driven Digital Twin Audit Framework for Cybersecurity Risk Assurance: Empirical Evidence from the Egyptian Exchange

This study develops an XAI-driven Digital Twin Audit Framework designed to enhance cybersecurity risk assurance within capital market environments, with empirical evidence from the Egyptian Exchange (EGX). Purpose: The research aims to address the growing limitations of traditional audit approaches in detecting, simulating, and inter-preting cybersecurity threats that affect financial integrity and operational continuity in highly digitalized trading ecosystems. Method and Design: The study adopts a multi-layer digital twin architecture combining real-time market data, process simulation, attack vector modeling, and explainable AI (XAI) analytics. A mixed-method empirical design is applied, integrating trading logs, cybersecurity incident records, and interviews with auditors, IT security specialists, and EGX operational experts. Approach: The framework simulates cyber-attacks (e.g., order-book manipulation, API hijacking, DDoS scenarios) to assess their impact on control effectiveness, data integrity, and audit risk judgments. XAI models provide interpretable insights to support professional skepticism and enhance audit decision-making. Findings: Results indicate that digital twin-enabled auditing improves early detection of anomalies, strengthens the assessment of cyber-risk materiality, and significantly enhances assurance over IT controls and data reliability. The XAI layer increases trans-parency and enables auditors to justify risk-based decisions more accurately. Originality and Value: This research is the first to integrate digital twin technology and XAI into an audit framework for cybersecu-rity assurance in an emerging-market stock exchange. Theoretical Implications: It advances audit theory by embedding simulation and explainable analytics within the risk assessment process. Practical Implications: It offers regulators, audit firms, and stock exchanges a scalable tool for cyber-assurance. Social Implications: Enhancing cybersecurity assurance supports investor confidence, market stability, and financial system resili-ence.