In the realm of accounting and finance, the choice of auditor and its impact on the transparency and quality of financial reporting is a pivotal concern for both academics and practitioners. The study by Karel Hrazdil, Dan A. Simunic, and Nattavut Suwanyangyuan, published in the Journal of Accounting, Auditing & Finance, sheds light on this […]
A recent study by Annika Bonrath and Marc Eulerich, published in the International Journal of Auditing, embarks on an insightful exploration into the integral role of Internal Audit Functions (IAF) in the domain of fraud prevention and detection. This research is timely, given the increasing complexities within organizational structures and the rising prevalence of fraudulent […]
As the corporate world increasingly recognizes the importance of diversity and inclusion, boardroom gender diversity has emerged as a critical area for reform and institutional monitoring. In their groundbreaking study published in the „Review of Accounting Studies,“ Larry Fauver, Mingyi Hung, Alvaro G. Taboada, and Emily Jing Wang explore the global impact of boardroom gender […]
Artificial Intelligence (AI) has taken a front seat, steering innovation and operational efficiencies across industries. However, with great power comes great responsibility, and the rapid adoption of generative AI (GenAI) is no exception. A recent survey conducted by Gartner, Inc. reveals a significant shift in the audit landscape, spotlighting AI-related risks as the area seeing […]
A new study conducted by Mara Cameran, Domenico Campa, and Angela Pettinicchio published in the Journal of Accounting, Auditing & Finance delves into an important but less explored aspect of workplace diversity in the accounting profession, particularly focusing on the Australian audit market. Their research investigates whether ethnic minority audit partners face discrimination through lower […]
In the digital age, artificial intelligence (AI) has evolved from a futuristic vision to a core component of business strategy. This transition, especially with the advent of Generative AI, places AI at the heart of business technology, compelling businesses to reassess its potential impact critically. The latest insights from the National Association of Corporate Directors’ […]
In a revealing study that illuminates the shadowy depths of corporate fraud, Alexander Dyck, Adair Morse, and Luigi Zingales explore the real magnitude of corporate misconduct and its financial implications on a global scale. Published in the „Review of Accounting Studies,“ their research employs a novel approach by leveraging the fallout from Arthur Andersen’s demise […]
In an era where environmental, social, and governance (ESG) concerns are becoming increasingly paramount, the role of internal audit teams in ensuring the integrity and reliability of ESG reporting cannot be overstated. With over 60 jurisdictions around the world considering new sustainability reporting requirements, the demand for verifiable ESG data is higher than ever. This […]
In the era of artificial intelligence (AI), the question of moral responsibility in the face of harm caused by AI systems becomes increasingly pertinent. As AI continues to permeate various sectors—marketing, healthcare, finance, and beyond—its autonomy and decision-making capabilities raise significant ethical concerns. Yulia W. Sullivan and Samuel Fosso Wamba’s research, „Moral Judgments in the […]
In a significant move that could reshape the landscape of corporate reporting, the Securities and Exchange Commission (SEC) has adopted new rules aimed at enhancing and standardizing climate-related disclosures for investors. Announced on March 6, 2024, these rules mark a pivotal step in the SEC’s ongoing efforts to provide investors with more consistent, comparable, and […]
As the business environment continues to evolve in 2024, internal auditors are at the forefront of navigating through a labyrinth of challenges and opportunities presented by globalisation, climate change, geopolitical tensions, and rapid digital transformation. The KPMG Internal Audit Topics 2024 report shines a light on the pressing issues and emerging trends that are redefining […]
The field of nonprofit accounting research has seen remarkable growth and diversification over the past two decades, fueled by the advent of accessible, digitized data sources. Julie M. Mercado, Linda M. Parsons, and Kyle A. Smith’s paper, „The Growing Field of Nonprofit Accounting Research: 21st Century Data Sources, Topics, and Opportunities,“ published in the Journal […]
In the dynamic landscape of organizational management, the strategies employed to motivate employees and enhance performance have always been a subject of extensive research and debate. A recent study conducted by D. Kip Holderness, Kari Joseph Olsen, and Todd A. Thornock, and published in Behavioral Research in Accounting, takes a closer look at the nuanced […]
In an era where the complexity and pace of change are unparalleled, the PwC Global Internal Audit Study 2023 provides a beacon for internal auditors navigating through the intricate landscape of risks and opportunities. This extensive study, drawing insights from a broad spectrum of 4,680 leaders across 81 countries, underscores the evolving role of Internal […]
In the intricate world of auditing, the stakes are high when it comes to detecting fraud. Auditors, tasked with ensuring the financial integrity of organizations, must navigate a landscape where the mere mention of „fraud“ can tighten lips and close doors. Recent research led by Jared Eutsler from the University of North Texas, along with […]
In the realm of social sciences, the echo of a replication crisis has been reverberating, casting shadows of doubt over the reliability of research findings. This crisis suggests that many studies might not hold up under the scrutiny of replication attempts, a cornerstone of scientific validation. Accounting research, a vital subset of the social sciences, […]
In an age where the velocity of information can significantly impact financial markets, a recent study by Jenna D’Adduzio of The University of British Columbia, David S. Koo of George Mason University, Santhosh Ramalingegowda of the University of Georgia, and Yong Yu of The University of Texas at Austin sheds light on a pivotal aspect […]
In the fast-paced world of business, the speed at which companies fill job vacancies might seem like a trivial detail. However, a recent study published in the Review of Accounting Studies sheds light on the significant implications this detail holds for future firm profitability, particularly distinguishing between low-skill and high-skill job vacancies. Conducted by Ciao-Wei […]
In the ever-evolving landscape of the auditing profession, ethical conflicts (ECs) emerge as formidable challenges that auditors grapple with daily. These conflicts arise when auditors find themselves at a crossroads, torn between their personal values, professional obligations, and the actions they are compelled to take. The essence of such dilemmas is not only the struggle […]
In a recent development, the U.S. Securities and Exchange Commission (SEC) has taken action against Brian Sewell and his company, Rockwell Capital Management, in connection with a fraudulent scheme that targeted students enrolled in Sewell’s online crypto trading course, the American Bitcoin Academy. This scheme has left 15 students out of pocket by a staggering […]
In a world grappling with climate change, resource depletion, poverty, and injustice, the need for sustainable solutions has never been more urgent. Yet, the question remains: how can innovation be harnessed to address these pressing challenges responsibly? Enter the realm of „Responsible Design Thinking for Sustainable Development.“ This concept, revitalized by Brian Baldassarre, Giulia Calabretta, […]
On January 25, 2024, Securities and Exchange Commission (SEC) Chair Gary Gensler delivered a speech highlighting the significance of shortening the settlement cycle in financial markets. In his address, Chair Gensler emphasized the impact of this move on market efficiency, risk reduction, and investor benefits. The GameStop Events: A Reminder of Market Plumbing Chair Gensler […]
In the realm of corporate finance and reputation management, the question of how to effectively repair a company’s image after a financial restatement is a critical one. Lei Dong and Y. Ken Wang address this issue in their study, „Reputation Repair after a Restatement: The Role of Corporate Social Responsibility Disclosure,“ published in the Journal […]
The adoption of artificial intelligence (AI) in the field of accounting is rapidly changing the dynamics of the profession. A recent workshop, hosted by the Journal of Information Systems, brought together industry experts and academics to discuss the implications of AI for accounting. The key question on everyone’s mind: will accountants with AI replace accountants? […]
In the intricate world of occupational fraud, the decisions victim organizations make about punishing perpetrators are as varied as they are complex. A recent study published in the Journal of Forensic Accounting Research by Erlina Papakroni, Marie Rice, and Lisa M. Dilks delves deep into this subject. The research, utilizing data from the Association of […]
In the picturesque town of Davos, Switzerland, the 54th Annual Meeting of the World Economic Forum recently convened, bringing together a diverse array of global leaders against a backdrop of mounting geo-political tensions and emerging global challenges. Davos, known for its serene landscapes, transformed into a bustling hub of global discourse as over 60 heads […]
Artificial Intelligence (AI) presents a paradoxical nature. It’s a powerful tool, yet its current capabilities are still quite limited. AI holds the potential to significantly enhance human life but also poses risks such as exacerbating social inequalities and causing widespread job displacement. Despite its complex, technical nature, it’s important for non-technical individuals to grasp its […]
In the ever-evolving landscape of financial reporting, the role of internal controls has become increasingly pivotal, particularly in the context of audit completeness and the reliability of earnings announcements. A recent study by Michelle A. Draeger and Eric R. Lohwasser, published in Accounting Horizons, sheds light on this intricate relationship. Their research delves into how […]
Garry D. Carnegie’s reflective piece in the Accounting Historians Journal, marking the 50th anniversary of The Academy of Accounting Historians, offers a unique perspective on the evolution of the accounting profession over five decades. Established in 1973, under the leadership of Gary John Previts, the Academy has grown into a significant body within the accounting […]
In a rapidly changing financial landscape, controllers play a crucial role in maintaining an organization’s financial health. A recent research article, „Current Issues Faced by Controllers“ by Anthony C. Bucaro, T. Jeffrey Wilks, and Christopher G. Yust, delves into the current challenges encountered by controllers, shedding light on key issues and their implications. The study […]
In the digital age, the shift towards online education has been accelerated, particularly in disciplines like accounting. However, this shift brings with it a new set of challenges, primarily concerning academic integrity. Jenelle K. Conaway and Taylor Wiesen dive into this issue in their article, „Academic Dishonesty in Online Accounting Assessments—Evidence on the Use of […]
In the rapidly evolving world of accounting, a recent study sheds light on two crucial factors influencing accounting students‘ commitment to the profession: the sense of belonging and the impact of stereotype threat. Cristina Bailey, Serena Loftus, and Sarah Shonka McCoy delve into this topic in their article, „Do I Belong? The Impact of Belongingness […]
In a world where diversity and inclusion are becoming increasingly important in the workplace, a recent research article titled „Perceived Organizational Inclusion: Evidence from Neurodivergent Accountants in the U.S.“ by Loreal Jiles, Qi Duong (Susie), and Roopa Venkatesh explores the intersection of neurodiversity and the accounting profession. This study sheds light on the challenges faced […]
Drawing on organizational legitimacy theories, a recent research paper suggests that managers may adopt similar accounting practices as industry leaders to gain credibility and legitimacy. Especially for newly appointed CEOs, mirroring the accounting behaviors of industry leaders can serve as a signal of trustworthiness in an environment where stakeholders might be uncertain about their capabilities. […]
In their recent study, Yueqi Li, Sanjay Goel, and Kevin Williams delve into the profound impact of remote auditing on the audit profession. First published in February 2023, their research provides a comprehensive analysis of how the shift from traditional on-site audits to remote audits has affected audit quality, efficiency, and auditors‘ job satisfaction. Key […]
In their recent research article, Stefan Simic, Le Luo, and Rina Datt provide intriguing insights into how compensation strategies within companies influence their decision to engage in carbon assurance. Published in September 2023, their study, titled „Compensation and carbon assurance: Evidence from the United Kingdom,“ explores a significant and timely topic given the growing urgency […]
Tracie Frost, Liwei Shan, Albert Tsang, and Miao Yu’s research, published in July 2022, examines the relationship between media coverage of corporate social irresponsibility (CSI) and audit fees on a global scale. Their study, using data from 35 countries, found a significant positive correlation between media exposure of CSI and increased audit fees. This relationship, […]
Robotic Process Automation (RPA) has emerged as a popular tool among auditors and corporate accountants, aiding in various accounting tasks. While the benefits of RPA are often highlighted, its potential risks and challenges are less frequently discussed. In a revealing article by Marc Eulerich, Nathan Waddoups, Martin Wagener, and David A. Wood, titled „The Dark […]
In the realm of corporate finance and accounting, the impact of internal control weaknesses (MWs) on shareholder trust and perceptions is a topic of ongoing interest and importance. A recent article by Hambisa Belina, K. Raghunandan, and Dasaratha V. Rama, titled „Do Shareholders Care about ‚Surprise‘ Internal Control Weakness Disclosures?“ published in Current Issues in […]
In 2022, the UK witnessed a significant increase in the value of fraud cases, as reported by KPMG UK’s latest Fraud Barometer. This year has seen a startling rise to £1.12 billion in fraud value, marking a 151% increase compared to the previous year. This blog post delves into the critical findings of this report, […]
The article „Attracting the Next Generation of Accountants“ delves into the intersection of career choice and personal values in the wake of the COVID-19 pandemic. With a spotlight on Gen Z’s entry into the workforce and their affinity for sustainability, the study presents an intriguing exploration of how the accounting profession could evolve to meet […]
In their recent study published in „AUDITING: A Journal of Practice & Theory,“ Ghio, Moulang, and Gendron delve into the experiences of women auditors during the COVID-19 pandemic. They identify that the pandemic, far from leveling the playing field, instead further highlighted and intensified existing gender norms and disparities in the audit profession. Women auditors […]
In the world of accounting, artificial intelligence (AI) is emerging as a game-changer. By automating operations, analyzing data, identifying fraud, enabling predictive analytics, and offering personalized financial advice, AI brings accuracy and efficiency to accounting processes. This transformative technology empowers organizations to make informed and sustainable decisions based on real-time data, aligning with Sustainable Development […]
In the rapidly evolving landscape of finance and accounting, the potential of Audit Analytics (AA) stands out, promising to transform the Internal Audit Function (IAF). However, despite its potential, its adoption remains limited. A recent study in the „Journal of Emerging Technologies in Accounting“ delved deep, identifying both driving and inhibiting factors affecting AA’s integration. […]
The internal Audit Foundation in collaboration with Grant Thornton recently released a report in which over 200 chief audit executives (CAEs) and directors shared their perspectives on leveraging data analytics to generate and elevate value. The majority of internal auditing teams are already prioritizing data analytics and automation as a tool to add value to […]
A new article in the IIA’s publication “Internal Auditor” discusses a report released by the U.S. Office of the Comptroller of the Currency (OCC) regarding the consumer account and cross-selling failures at Wells Fargo Bank. The report recommends fines for three former internal audit and risk management executives at the bank. While it is rare […]
The world of financial reporting has seen significant transformations in the past few decades, with evolving regulatory standards and changing business environments. Amid these changes, one area that has continually held significance is the internal audit function (IAF). Despite its importance, the IAF has remained an area with limited data availability, constraining further research and […]
Recent developments in the accounting industry have led to increased collaboration between professionals from different accounting firms. This collaboration involves firms providing various services, such as audit and tax, to client organizations. While this trend offers many benefits, it also raises questions about how information is shared among these professionals and its potential impact on […]
The Securities and Exchange Commission (SEC) has made two significant announcements recently, indicating its ongoing commitment to a transparent and accountable financial market. Registration Fee Rate Hike for Fiscal Year 2024 The SEC unveiled the fee rates for fiscal year 2024. Effective from October 1, public companies and other issuers will experience an increase in […]
Earnings management has long been a concern in the corporate world, with companies striving to meet or beat analysts‘ earnings forecasts through various accounting tactics. External auditors play a critical role in curbing opportunistic earnings management behavior and providing financial statement reliability. However, recent research by Eric Lohwasser and Yaou Zhou explores how companies that […]
Generative AI, a technology with the capability to drive vast economic transformation, is on the brink of reshaping our future. McKinsey’s recent research underlines the sheer magnitude of this shift, suggesting generative AI could add a staggering $2.6 to $4.4 trillion annually across numerous use cases. To put this in perspective, this is akin to […]
In the era of remote work, public accounting firms grapple with a vital concern: how to effectively socialize new employees. This process, known as Organizational Socialization (OS), is pivotal for new professionals to assimilate the attitudes, values, social skills, and technical expertise vital to their success in the firm. Historically, newcomers were inducted into a […]
In today’s fast-paced financial markets, the timely and accurate disclosure of material information is crucial for investors to make informed decisions. However, some managers may seek to exploit investors‘ cognitive constraints and processing capacity to strategically hide negative news. In this blog post, we explore a recent research study conducted by Caleb Rawson, Brady J. […]
Whistleblower programs have undoubtedly made their mark in the corporate sector, acting as a formidable tool in the fight against unethical behavior. Yet, when we pivot our attention to the academic realm, especially where student policies for reporting peer misconduct are concerned, a glaring gap emerges. F. Todd DeZoort’s enlightening research, published in the esteemed […]
The International Sustainability Standards Board (ISSB) has recently issued its inaugural global sustainability disclosure standards, marking a significant development in the field of sustainability reporting. The standards, IFRS S1 and IFRS S2, aim to provide a common language for disclosing sustainability-related risks, opportunities, and climate-related factors. These standards will have far-reaching implications for internal auditors, […]
Artificial intelligence and algorithmic decision-making systems have become an integral part of our daily lives, impacting various aspects, from e-commerce and entertainment to medical diagnosis and financial domains. While these algorithms offer efficiency and scalability, users often struggle to trust these systems due to the „black box paradox.“ Users increasingly demand transparency in algorithmic decision-making […]
Audit regulation is primarily focused on enhancing the quality of external financial reporting and protecting the interests of external stakeholders. However, there is growing recognition that such regulation can also have spillover effects on the internal information environment of organizations, benefiting managers in their decision-making processes. A recent study by Brant Christensen, Lijun (Gillian) Lei, […]
To assist organizations in understanding and benchmarking their own processes, the Association of Certified Fraud Examiners (ACFE) and Thomson Reuters collaborated on a report. This report aims to explore the risks and controls associated with business-to-business transactions and relationships. The findings are compiled in: “Combatting Business-To-Business Fraud: Benchmarking Report”. The report is intended to provide […]
The adoption of advanced language models, such as ChatGPT, in the accounting field has sparked considerable interest and discussion in recent times. In this blog post, we dive into a recent paper that talks about how Uniper, a multinational energy company, has harnessed ChatGPT to enhance its internal audit function (IAF) and revolutionize its auditing […]
There is a rapid shift in auditing practice with the integration of audit data analytics (ADA) tools. As the audit landscape changes, the question arises: How can educators effectively integrate ADA into the existing auditing curriculum to better equip students for the future of auditing? An illuminating study by Booker, Pelzer, and Richardson, published in […]
The Public Company Accounting Oversight Board (PCAOB) has introduced critical audit matters (CAMs) to expand audit reports to provide external users with more information regarding potential risks of material misstatements. While the intention of CAM disclosures is to highlight the risk of material misstatement and the corresponding audit procedures, early studies suggest that investors may […]
A newly published paper in Accounting Horizons highlights the implications of frequent auditor switching for the audit quality. The paper is particularly significant for regulators, practitioners, and academics to inform policy discussions, audit committee disclosure requirements, risk models, investment decisions, and future research on auditor switching. Existing accounting research primarily focuses on single-instance auditor changes […]
In a press release published on May 18, 2023 the Institute of Internal Auditors (The IIA) and the Association of Certified Fraud Examiners (ACFE) presented their report: “Building a Best-in-Class Whistleblower Hotline Program”. The report includes benchmarking data, evaluates the factors contributing to program effectiveness, explores reasons for not having a hotline program, and examines […]
It is not an uncommon occurrence for companies to face operational and accounting failures at some point in their journey. When such events occur, these companies often find themselves seeking ways to salvage their reputations and regain the trust of their stakeholders. According to a recent study published in The Accounting Review by Matthew S. […]
In 2022, several risk areas put organizations in a state of permanent crisis: the ongoing pandemic, supply chain issues, climate change along with natural disasters, persistent inflation and rising energy prices driven by the war in Ukraine. For this reason, 14 Institutes of Internal Auditors across 15 European countries have conducted a study on key […]
The eighth market scan conducted by the IAASB’s Disruptive Technology team explores the Internet of Things (IoT), focusing on Networks for Asset Monitoring and Data Generation. This technology enables real time tracking, management, and monitoring of business processes and assets. The article provides an overview of IoT, discusses its impact on the International Auditing and […]
A new research article in Accounting Horizons shows the efficacy of Center for Internal Auditing Excellence (CIAE) programs in raising the quality of Internal Audit Functions (IAFs) of nearby companies. A lack of domain knowledge in internal auditing could lead to lower-quality and less effective IAFs. The CIAE program produces new practitioners with greater internal […]
A newly released paper emphasizes the significance of risk governance in organizations and its susceptibility to internal and external influences. It underscores the importance of executives and boards in setting a strong tone at the top regarding risk governance in their organizations. This tone should prioritize and highlight the value and role of risk governance […]
The Auditing Standards of the Public Company Accounting Oversight Board’s (PCAOB) provide authoritative guidance to auditors of U.S. public companies during their audits. However, these standards predominantly employ masculine generic pronouns instead of gender-specific or gender-neutral pronouns. Reflecting the audit profession’s and the PCAOB’s emphasis on equity and inclusion, as well as the significance to […]
In the fast-paced digital era, technological proficiency has become increasingly vital across various industries. To bridge the gap between technology and the accounting profession, a group of dedicated students and faculty from Brigham Young University (BYU) has established TechHub.training. The mission is to provide a comprehensive platform that empowers young professionals with essential technology skills. […]
The “ Fraud Risk Management Guide – second edition “ article from the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the Association of Certified Fraud Examiners (ACFE) is an updated guidance for organizations to follow in addressing the specific fraud risk. This Guide updates the first edition of the Fraud Risk Management […]
The International Sustainability Standards Board (ISSB) has recently issued its first Request for Information (RFI) on May 4, 2023. The purpose of this Request for Information (RFI) is to gather input and shape the ISSB’s work plan for the next two years. The ISSB is currently seeking feedback on its priorities during this period. You […]
ESG factors have rapidly become as important as financial metrics for corporations, leading to increased pressure and potential for exploitation. Organizations must evaluate their ESG programs, update reporting standards, strengthen controls, and address fraud risks. However, the lack of consistent standards in the regulatory and reporting frameworks poses challenges, giving anti-fraud practitioners a critical role […]
The increasing interconnectivity of our world creates new opportunities as well as new risks. Deployment of digital technologies, exponential growth in data volumes, and changing business needs are expanding targets for cyber threats, making effective collaboration between cyber and risk management a strategic priority. Deloitte’s Global Future of Cyber Survey 2023 examines the current state […]
ChatGPT, an advanced language model, has been making waves in the media, with many speculating about its potential for massive disruption, particularly in the fields of accounting and auditing. However, prior research has raised concerns about ChatGPT’s performance on student assessment questions. In order to shed light on this issue, a recent research project aimed […]
The Securities and Exchange Commission (SEC) has issued thelargest-ever whistleblower award of nearly $279 million. The award was granted to a whistleblower whose information and assistance led to successful enforcement actions by the SEC. This award surpasses the previous record of $114 million given in October 2020. The SEC’s whistleblower program has been highly successful […]
As of December 15th, 2022, the IDW has introduced ISA [DE] 315 (Revised 2019), an auditing standard that has been fundamentally revised by the IAASB to identify and assess the risks of material misstatement. Due to the changing audit scope resulting from ongoing digitization, the increasing use of new automated tools and techniques, and other […]
The global economy has consistently been subject to a variety of financial risks and the COVID-19 pandemic has brought new challenges that require careful consideration. In a recent article, The Wall Street Journal highlighted twelve areas of financial risk in the current economic landscape. The charts presented in the article show the increasing levels of […]
The US Securities and Exchange Commission (SEC) requires all firms to include a risk factor section in their periodic filings, but doubts remain about the informativeness of these disclosures. Cybersecurity risk disclosures are particularly important due to the increasing number of data breaches, and firms have a responsibility to inform investors about changes in their […]
Recent changes in regulations in Germany about the Financial Market Integrity Strengthening Act (FISG) highlight the importance of audit committee effectiveness in ensuring the reliability and transparency of financial reporting. The FISG was enacted in response to high-profile accounting scandals and corporate failures, including the collapse of Wirecard, which shook the confidence of investors in […]
Despite the increasing use of AI as an enabler and disruptive technology for positive change, the voices of caution start to rise. In a recent Harvard Business Review article, the potential cybersecurity risks arising from the increasing use of OpenAI’s ChatGPT are being discussed. The new technology offers hackers new ways to create sophisticated phishing […]
Sustainability reporting is becoming an increasingly important topic in the business world, and for good reason. It is a way for companies to communicate to stakeholders how they are addressing sustainability issues, such as climate change, social responsibility, and environmental impact. By providing transparency and accountability, sustainability reporting helps build trust with stakeholders and demonstrates […]
The audit expectation gap describes the difference between what auditors do and what the public thinks they do. It has been a problem for the audit profession for decades, particularly with regard to auditors’ responsibilities for preventing and detecting fraud and maintaining internal controls. However, there has been a recent paradigm shift towards digital audits […]
Algorithms are becoming increasingly prevalent in our lives, from the ads we see on social media to the decisions made by banks and other institutions. However, as algorithms become more widespread, it is crucial to ensure they are not biased or discriminatory through appropriate auditing approaches. In a recent Harvard Business Review article, the importance […]
COSO has released additional guidance „Achieving Effective Internal Control of Sustainability Reporting“ using the globally recognized COSO Internal Control-Integrated Framework as its basis. The guidance includes references to the role of internal audit function in sustainability reporting and key themes to consider while establishing and maintaining an effective system of internal control over sustainable business […]
The Pulse of Internal Audit report is a primary data source for leaders in internal audit. It offers valuable information on various topics such as internal audit budgets, staff, audit plans, risks, and more important topics. The 2023 edition includes timely data on audit frequency for critical risk areas. The report serves as a benchmarking […]
The use of ChatGPT, an artificial intelligence (AI) language model from OpenAI, is currently causing „office drama“ with large debates over its appropriate use, productivity hacks, and the evaluation of human performance. While some workers embrace it to create professional-sounding emails and automate tasks, others push back on machine-created work. JPMorgan Chase and Verizon Communications […]
The expenses for both companies and their investors due to cybersecurity incidents are increasing, and the rate of increase is also going up. The Securities and Exchange Commission (SEC) is suggesting changes to its rules to make public companies provide better information about their cybersecurity risk management and incident reporting. In the current form, the […]
The International Internal Audit Standards Board just announced the next stage in the IPPF evolution (IIA, 2023): Public comment on the proposed Standards is now open! The IIA started its IPPF Evolution project in 2020, with the goal of modernizing and transforming the IIA Standards to ensure their continued relevance and applicability. Research and benchmarking […]
It has now been almost three years since the IIASB acknowledged the need for re-organizing and -presenting the Standards, and thus began to update the internal audit profession’s governing documents. After a throughout revision phase that took into account the input of a broad range of stakeholders, a draft of the new standards is now […]
The Institute of Internal Auditors’ (IIA) position paper Relationship of Trust – Building Better Connections Between the Audit Committee and Internal Audit stresses the importance of a trusting and dynamic partnership between internal audit and the audit committee. The IIA calls the relationship between both parties “critical” to good governance and suggests that the “CAE […]
With the onset of and hype around ChatGPT, companies increasingly start experimenting with tools that involve artificial intelligence (AI). However, guidance and frameworks on how internal auditing can deal with AI remain scarce. Back in 2017, the IIA outlined in their white paper Artificial Intelligence – Considerations for the Profession of Internal Auditing that internal […]
Disclosing Environmental, Social, and Governance (ESG) information is crucial in today’s business environment because it allows investors, stakeholders, and consumers to make informed decisions about a company’s impact on the environment, society, and governance practices. Furthermore, ESG information has been linked to better long-term financial performance and it is increasingly used by investors as a […]
Fraud is likely among the most costly and common forms of financial crime in the world. There are two reasons why fraud is so prevalent: First, any organization with employees must entrust those employees with access to or control over its assets (e.g., keeping its books, managing bank accounts, or safeguarding inventory). It is this […]
The Public Sector differs significantly from profit organizations in terms of its objectives and purpose. Thus, the work and structure of internal audit functions (IAFs) differ fundamentally between these types of organizations as well. To address the special needs of IAFs within the public sector a practice guide by the Institute of Internal Auditors (IIA) […]
In the last report “Redefining the Resilient Organization” of a three-part series on “Internal Audit in a Post-COVID World” by the Institute of Internal Auditors (IIA), the authors give internal auditors guidance on how to prepare organizations for potentially arising business transformations and disruptions. Part of this guidance is putting the internal auditor’s focus, especially […]
The collection on „Global Perspectives & Insights: Cybersecurity in 2022, Parts 1-3”, published by the Institute of Internal Auditors, discusses different issues within the contemporary evolving cybersecurity landscape. While part 1 focuses on the implications of regulatory changes on cyber reporting by the SEC, part 2 deals with the benefits of symbiotic relationships between Heads […]
The report „Embedding ESG and sustainability considerations into the Three Lines Model“, co-written by the World Business Council for Sustainable Development (WBCSD) and the Institute of Internal Auditors (IIA), provides suggestions and guidance, on how environmental, social, and governance (ESG)-related matter can be integrated into the key roles of the revised Three Lines Model – […]
In its second report on “Internal Audit in a Post-COVID World”, the Institute of Internal Auditors (IIA) deals with global supply chains, which were severely hit by pandemic challenges and uncertainties, being only 2% of global supply chains prepared for such an event according to surveys of the US branch of the consulting firm Ernst […]