As organizations brace for a year of increasing disruption and complex risk, Deloitte’s report “Internal Audit Hot Topics 2025” sheds light on the critical areas internal audit functions must prioritize to remain relevant and value-driven. Authored by Deloitte’s audit and assurance experts, the report emphasizes that 2025 will demand greater agility, deeper stakeholder collaboration, and […]
The article Cultivating Engaged Audit Teams: The Effect of the Lead Audit Partner’s Leadership Behaviors by Gabriel Dickey, Joseph Ugrin, and J. Lee Whittington explores the critical role of lead audit partners in fostering team engagement, a key factor in improving auditor well-being and audit quality. Drawing on data from 82 audit teams across three […]
When a company suffers a cybersecurity breach, the consequences often reach far beyond its own firewall. The article The Role of Internal Controls in Reducing Cybersecurity Contagion Effects by Kelton and Yang (2024) reveals that even nonbreached firms in the same industry, so-called „bystander firms“, can suffer significant stock market losses following a peer’s cyber […]
Investigating the influence of auditors’ materiality threshold disclosures on employees’ decisions to report financial misconduct, the article The Unintended Consequences of Audit Materiality Disclosures on Whistleblowing Intentions by Mackenzie M. Festa, D. Kip Holderness, Jr., Megan M. Jones, and Richard A. Riley, Jr. highlights a critical organizational dynamic. Although these disclosures aim to improve transparency […]
As cyber threats grow more sophisticated, internal auditors are increasingly expected to assess not just technical controls, but also the broader maturity of their organization’s cybersecurity posture. The article Understanding Cybersecurity Maturity in Practice offers valuable insights into how cybersecurity maturity models are actually applied in organizational settings—and what this means for audit and governance […]
In their study A Study of Female Presence in the Audit Process on Audit Quality, Kevin J. Sun and Joseph H. Zhang examine the influence of female leadership on audit outcomes, focusing on roles like audit partners and audit committee chairs. Drawing on data from U.S. firms between 2016 and 2019, the research sheds light […]
Investigating systematic approaches to assessing corporate governance, Lauren M. Cunningham, Christie Hayne, Terry L. Neal, and Sarah E. Stein, in their work Evaluating Corporate Governance: Guiding Principles and Calls for Future Research propose a set of guiding principles to enhance governance evaluation practices. Drawing insights from interviews with 29 Chief Audit Executives (CAEs) from publicly […]
The article Transparent AI in Auditing Through Explainable AI by Chen Zhong and Sunita Goel delves into the application of Explainable Artificial Intelligence (XAI) in auditing, with a focus on enhancing transparency and accountability in AI-driven decision-making processes. As AI systems are increasingly integrated into auditing for tasks like fraud detection, their lack of transparency—commonly […]
On February 19, 2025, Google Research unveiled a groundbreaking innovation: the AI co-scientist, a multi-agent system powered by Gemini 2.0. Designed to collaborate with researchers, this system is capable of generating novel hypotheses, developing research plans, and even proposing validated biomedical solutions. While its initial applications are rooted in the sciences, the underlying principles have […]
Does the weather influence how we evaluate others? A new study published in the Journal of Management Accounting Research explores this intriguing question. Researchers Carolyn Deller and Jeremy Michels examined whether sunny or cloudy days impact subjective performance evaluations in the workplace. Contrary to popular belief, they found no evidence that sunny days result in […]
Focusing on the impact of adherence to the Institute of Internal Auditors’ (IIA) Core Principles, Christopher G. Calvin and Marc Eulerich explore how these principles shape the effectiveness and scope of internal audit (IA) activities in their paper The Effects of Internal Audit’s Core Principles on Audit Characteristics. Based on survey data from Chief Audit […]
Examining the trends and implications of ESG-related Critical Audit Matters (ECAMs) in audit reports, Heba Abdel-Rahim, Dana Hollie, and Shaokun Yu, in their paper Early Evidence on Critical Audit Matters Regarding Environmental, Social, and Governance (ESG) Sustainability, analyze the role of these disclosures in improving transparency. Introduced under the PCAOB’s expanded requirements for audit disclosures, […]
The article Artificial Intelligence in Auditing: How Auditor AI Use Can Mitigate Legal Liability by Robert Libby and Patrick D. Witz explores the transformative impact of artificial intelligence (AI) on the audit profession, particularly in reducing legal liability associated with independence concerns. The research investigates whether the incorporation of AI in audit processes can address […]
Amanuel Tadesse, Stephanie Walton, and Yiyang Zhang analyze how adopting the COSO 2013 internal control framework affects firms‘ cybersecurity risks. Their study COSO Framework Adoption and Cybersecurity Breaches underscores the framework’s advancements over the 1992 version, highlighting its stronger focus on cybersecurity, governance, and operational risk management, making it a vital tool for mitigating IT-related […]
Kevin Fulcer et al. explore the use of unsupervised learning techniques to enhance audit analytics by identifying anomalies as outliers in financial datasets in their article Application of Outlier Detection Methods in Audit Analytics. These methods enable auditors to uncover potentially high-risk transactions without the need for labeled outcomes, offering a scalable and efficient solution […]
In their article A Study of Diversity and Performance in Internal Audit Teams: Insights from Chief Audit Executives Annika Bonrath and Marc Eulerich investigate the relationship between diversity and the performance of internal audit functions (IAFs). The research studies the complex and context-sensitive outcomes of diversity on both demographic and cognitive aspects. The study uses […]
Exploring the impact of transitioning from the conventional time-based budget model to a non-time-based (NTB) approach in auditing, the study Time Out: Auditor Perceptions and Audit Outcomes When Moving Away from a Time-Based Budget Audit Model by Erin M. Hawkins, Andrew H. Newman, Jesse C. Robertson, Chad M. Stefaniak, and Jeremy M. Vinson provides valuable […]
In an era where vast amounts of financial data remain trapped in unstructured formats, a recent study by Huaxia Li, Haoyun Gao, Chengzhang Wu, and Miklos A. Vasarhelyi presents an innovative approach to overcoming this persistent challenge. Published in the Journal of Information Systems, their research introduces a groundbreaking framework that leverages large language models […]
The emergence of the metaverse marks a significant turning point for the accounting profession, introducing both exciting opportunities and formidable challenges. In their insightful paper, The Metaverse and Accounting: A Paradigm Shift in Emerging Technologies and Their Implications on Accounting Research, authors Abdullah S. Alawadhi and Abdulrahman A. Alrefai delve into how this virtual realm […]
A new publication from COSO, authored by Marc Eulerich, Jan Grüne, and David Wood, explores how organizations can align Robotic Process Automation (RPA) governance with the COSO Internal Control Integrated Framework (ICIF). By connecting RPA strategies with established control principles, the guidance ensures organizations can use automation effectively while mitigating risks. For more details, check […]
In a rapidly evolving work environment shaped by the COVID-19 pandemic, a recent study by Tien-Shih Hsieh, Zhenyang Tang, Zhihong Wang, and Kyunghee Yoon examines how workforce technology competency influences audit quality under remote working conditions. Published in the Journal of Information Systems, the research reveals significant insights into the challenges faced by auditors and […]
In an era where environmental, social, and governance (ESG) reporting has emerged as a critical avenue for companies to demonstrate their commitment to sustainability, the demand for reliable and transparent ESG reports has never been greater. However, the landscape of ESG assurance remains relatively uncharted, with research in this area still in its infancy. The […]
In the era of accounting data analytics, visual representation plays a key role in enhancing decision-making efficiency and effectiveness. A recent study by Shawn P. Granitto and Uday S. Murthy, published in the Journal of Information Systems, explores the optimal use of various graph types—specifically, line graphs, bar graphs, pie charts, and stacked column graphs—when […]
In recent years, the discourse surrounding artificial general intelligence (AGI) has been dominated by concerns about its potential dangers and the ethical implications of emerging technologies. However, a new paper titled It’s Not Intelligence; It’s Functionality! by Yu Gu, Qing Huang, and Miklos A. Vasarhelyi, published in the Journal of Emerging Technologies in Accounting, shifts […]
As the Journal of Emerging Technologies in Accounting (JETA) celebrates its 20th anniversary, a recent analysis sheds light on its significant impact beyond the realm of accounting. In their paper, Impact of JETA As Measured by an AI Generated Taxonomy: Reaching Beyond Accounting, authors Yu Cong and Hui Du utilize OpenAlex, a comprehensive bibliometric database, […]
The Institute of Internal Auditors (The IIA) and the Association of Certified Fraud Examiners (ACFE) have released a pivotal report titled Building a Best-in-Class Whistleblower Hotline, which delves into the essential elements of effective whistleblower hotline programs across global workplaces. This report aims to provide organizations with valuable benchmarking data and insights to enhance their […]
A recent study by Joseph F. Brazel, Matthew Starliper, and Yao Yu explores the intricate dynamics of management communication styles when disclosing material weaknesses in internal control over financial reporting (ICFR). The research, published in Accounting Horizons, highlights significant findings that question how communication approaches can impact investor perceptions and decisions. Under Section 404 of […]
As organizations navigate a rapidly changing risk landscape, the latest report, „Risk in Focus 2025,“ authored by the European Confederation of Institutes of Internal Auditing, sheds light on critical issues for internal auditors. With insights gathered from 985 Chief Audit Executives (CAEs) across Europe, the report emphasizes the need for a strategic focus on risk […]
In a recent article by Nir Eisikovits, William C. Johnson, and Ariel Markelevich, published in Accounting Horizons, the authors tackle the rapidly growing role of artificial intelligence (AI) in accounting and auditing, highlighting both the opportunities and risks that come with this technology. AI is already transforming accounting, taking over repetitive tasks like data entry […]
In a recent article by El’fred Boo, Kin Yew Low, Premila Gowri Shankar, and Hun-Tong Tan, published in Accounting Horizons, the authors explore how discussing specific audit procedures in the Critical Audit Matter (CAM) section of auditor reports can influence financial risk assessments. The focus is on whether these discussions help users maintain stable assessments […]
In a recent article by Jun Oh, P. Eric Yeung, and Bo Zhu, published in The Accounting Review, the authors explore how technology coopetition impacts firms‘ voluntary disclosures of innovation. Technology coopetition refers to the delicate balance between cooperation and competition that companies face when participating in technology standard-setting organizations (SSOs). According to the study, […]
A recent European Investment Bank (EIB) climate survey reveals that Europeans over the age of 30 have a better understanding of climate change compared to younger generations. The survey highlights significant generational differences in awareness and perception of climate issues, emphasizing the need for targeted education and communication strategies. The EIB survey found that individuals […]
In a recent article by Joseph F. Brazel, Matthew Starliper, and Yao Yu, published in Accounting Horizons, the authors investigate how management’s communication style when disclosing material weaknesses in internal control affects investor perceptions. Under Section 404 of the Sarbanes-Oxley Act, management must disclose the effectiveness of their internal controls over financial reporting, but how […]
The recent U.S. Supreme Court decision in Chevron v. NRDC has caused concern over its potential impact on the SEC’s environmental, social, and governance (ESG) agenda. However, according to a recent article on Responsible Investor, legal experts believe that the fallout for the SEC’s ESG initiatives will be limited. The Chevron decision, which involved the […]
A recent study by Alice Annelin and Tobias Svanström, published in the International Journal of Auditing, delves into the complex effects of diversity within audit teams on both work quality and affective state outcomes. This research highlights how diversity in audit teams can simultaneously enhance and hinder different aspects of audit performance. The study explores […]
The rise of generative AI (Gen AI) has brought remarkable advancements but also significant risks. According to a recent article in Harvard Business Review, „How to Red Team a Gen AI Model,“ a proactive approach called red teaming is essential to identify and mitigate these risks. Red teaming involves simulating adversarial attacks to uncover vulnerabilities […]
A new study conducted by Milad Soltani, Alexios Kythreotis, and Arash Roshanpoor, published in the International Journal of Accounting, Auditing and Performance Evaluation, delves into the intersection of national culture, prosperity index, and the effectiveness of the fraud triangle in preventing financial statement fraud (FSF). This comprehensive cross-country meta-analysis provides a nuanced understanding of how […]
As environmental, social, and governance (ESG) factors gain prominence across industries, the defense sector is also adapting to these trends. A recent article by Strategy& (PwC) titled „The Evolving Role of ESG in the Defense Industry“ examines how ESG considerations are becoming integral to the defense industry’s operations and strategic planning. The defense industry has […]
A recent study by Florian Philipp Federsel, published in the International Journal of Auditing, provides insightful evidence on the impact of audit firm and audit partner rotations on financial auditing within the European Union. The paper explores whether these rotations contribute to a renewed perspective in audits, potentially enhancing audit quality and independence. Federsel’s research […]
A recent study by Mohan Fonseka, Omar Al Farooque, Xing Yang, and Wu Qilin, published in the International Journal of Auditing, examines the impact of internal control quality and mandatory internal control disclosure regulations on executive perks in Chinese firms. Spanning a dataset from 2008 to 2019, the research delves into how these factors influence […]
Gender diversity in corporate boardrooms is a critical topic in business ethics. A recent study by Schoonjans, Hottenrott, and Buchwald, published in the Journal of Business Ethics, titled „Welcome on Board? Appointment Dynamics of Women as Directors,“ explores the complex factors influencing the appointment of women to director positions. The study examines various factors, including […]