The 2024 edition of Top 10 Emerging Technologies, published by the World Economic Forum in collaboration with Frontiers, presents a compelling exploration of the innovations that are poised to reshape our global economy, environment, and society. This annual report has become a highly anticipated reference for leaders across sectors, and the 2024 release does not […]
Why You Shouldn’t Outsource Your Brain: The Memory Paradox in an AI World
In the chapter The Memory Paradox: Why Our Brains Need Knowledge in an Age of AI, Barbara Oakley, Michael Johnston, Ken-Zen Chen, Eulho Jung and Terrence Sejnowski challenge a widespread assumption of our time: that memorization is outdated. With smartphones in our pockets and AI tools at our fingertips, many educators and learners alike have […]
Rewarding Skepticism: Why Audit Culture Needs to Support Doubt
Professional skepticism is at the heart of quality auditing — yet not every auditor who applies it gets recognition. The article Who Rewards Appropriate Levels of Professional Skepticism? by Brazel, Leiby, and Schaefer (2025) explores a critical but under-researched question: Who actually rewards auditors for being skeptical, even when their suspicions turn out to be […]
When the Algorithm Advises: How Users Trust, Doubt, and Blame Generative AI in Tax Decisions
Generative AI is transforming how professional services are delivered, but how do people actually respond when a machine offers them expert advice? In the article “Beyond Algorithms: A Multifaceted Exploration of Trust, Confidence, and Blame in Generative AI-Assisted Advice”, researchers Nirmalee I. Raddatz, Paul A. Raddatz, Kehinde M. Ogunade, Sohee Kim, and Darsheika L. Williams […]
When Help Hurts: How Generative AI Can Undermine Student Learning
As generative AI becomes more prevalent in education, many see it as a promising assistant for students navigating complex academic tasks. But a new study titled „Generative AI Can Harm Learning: Five Experiments“, authored by Chinmayi Sharma, Anne Spencer Ross, and Paul V. Timmers and published in Science, raises serious concerns about its unintended consequences. […]
Complement or Substitute? AI’s Dual Impact on Human Skills and Labor Demand
Elina Mäkelä and Fabian Stephany, in their SSRN working paper “Complement or Substitute? How AI Increases the Demand for Human Skills,” provide a comprehensive analysis of how artificial intelligence (AI) reshapes labour markets by examining 12 million online job postings in the U.S. from 2018–2023. Their study tackles a foundational question in the AI discourse: does AI displace […]
Staying Ahead of the Curve: Key Internal Audit Priorities for 2025
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 Influence of Leadership on Audit Team Engagement: Key Behaviors for Boosting Performance
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 […]
Cybersecurity Contagion: Why Strong Internal Controls Matter for Nonbreached Firms
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 […]
The Unintended Effects of Audit Materiality Disclosures on Whistleblowing Behavior and Regulatory Considerations
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 […]
Cybersecurity Maturity Beyond the Checklist: What Internal Auditors Need to Know
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 […]
How Female Leadership Enhances Audit Quality: Key Insights from U.S. Firms
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 […]
Enhancing Corporate Governance Evaluations: Guiding Principles and Future Research Directions
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 […]
Enhancing Trust in AI-Driven Auditing: The Role of Explainable AI in Fraud Detection
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 […]
AI as a Co-Scientist: What Google’s New Research Means for Internal Auditing
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 […]
Cloudy Judgments: How Weather Influences Performance Evaluations
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 […]
How Internal Audits Core Principles Shape Audit Scope, Strategic Alignment, and Stakeholder Trust
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 […]
The Role of ESG-Related Critical Audit Matters: Trends, Challenges and Implications for Transparency
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, […]
Can AI Reduce Auditor Liability? How Artificial Intelligence Enhances Objectivity in Audits
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 […]
How COSO 2013 Strengthens Cybersecurity: Reducing Breach Risks and Financial Impact
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 […]
Enhancing Audit Analytics with AI: Outlier Detection for Identifying High-Risk Transactions
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 […]
The Impact of Diversity on Internal Audit Performance: Key Insights from Chief Audit Executives
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 […]
Rethinking Audit Efficiency: The Impact of Moving Beyond Time-based Budgeting
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 […]
Extracting Financial Data from Unstructured Sources: Leveraging Large Language Models
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 Metaverse and Accounting: A Paradigm Shift in Emerging Technologies and Their Implications on Accounting Research
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 […]
Integrating RPA Governance with COSO ICIF
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 […]
Audit Quality Under Remote Working Arrangement: The Role of Technology Competency
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 […]
Using Artificial Intelligence in ESG Assurance
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 […]
Are All Pictures Worth 1,000 Words? An Investigation of Fit Between Graph Type and Performance on Accounting Data Analytics Tasks
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 […]
It’s Not Intelligence; It’s Functionality!
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 […]
Impact of JETA As Measured by an AI Generated Taxonomy: Reaching Beyond Accounting
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, […]
Building a Best-in-Class Whistleblower Hotline: Key Insights from a Joint Report by The IIA and ACFE
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 […]
Management’s Communication Style When Disclosing Material Weaknesses in Internal Control
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 […]
Risk in Focus 2025: Hot Topics for Internal Auditors
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 […]
AI in Accounting: Managing Risks and Embracing Opportunities
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 […]
Can Audit Discussions Steady Financial Risk Assessments?
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 […]
Navigating Innovation Secrecy: How Technology Coopetition Shapes Voluntary Disclosures
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, […]
EIB Survey Reveals Age Gap in Climate Change Awareness
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 […]
The Power of Words: How Management’s Communication Style Influences Investor Confidence
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 […]
Chevron Decision: Minimal Impact on SEC’s Environmental and Social Goals
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 […]
The Impact of Audit Team Diversity on Work Quality and Affective State Outcomes
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 […]
Fortifying AI Models: How Red Teaming Uncovers Hidden Vulnerabilities
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 […]
The Moderate Role of National Culture and Prosperity Index on the Effectiveness of the Fraud Triangle to Prevent Financial Statement Fraud
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 […]
Defending the Future: ESG Strategies in the Defense Sector
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 […]
The Fresh-Look Effect: Audit Firm and Partner Rotations in Europe
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 […]
The effect of internal control quality and internal control disclosure regulation on executive perks: A quasi natural experiment from China
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 […]
Navigating the Boardroom: Strategies for Increasing Women Directors
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 […]
The Hidden Environmental Costs of AI: Unequal Impacts Revealed
The development and deployment of artificial intelligence (AI) are transforming industries and economies worldwide. However, as highlighted in a recent Harvard Business Review article, „The Uneven Distribution of AI’s Environmental Impacts,“ the environmental costs of AI are not evenly distributed. This article sheds light on the significant disparities in the environmental impacts associated with AI […]
SEC Targets Fraud: New Actions Against Deceptive Investor Practices
The Securities and Exchange Commission (SEC) plays a crucial role in maintaining fair, orderly, and efficient markets while protecting investors and ensuring transparency. Part of its mandate involves taking action against firms and individuals that mislead investors or fail to comply with regulatory standards. Examples of these actions are shown in these two selected examples […]
Shaping Careers: The Impact of Supervisor Ratings on Employee Growth
The role of supervisors in shaping employee careers is crucial, particularly through performance evaluations. A recent study by Judith Künneke, titled „Supervisor Impact on Employee Careers: The Role of Rating Differentiation,“ published in The Accounting Review, delves into how supervisors‘ practices in rating differentiation can significantly influence career outcomes. The research provides valuable insights into […]
Preparing for Compliance: Key Takeaways from the AI Act
As part of its vision to create „A Europe fit for the digital age,“ the European Union has introduced the AI Act, a pioneering framework aimed at regulating artificial intelligence (AI) across member states. This regulation is crucial in managing the complexities and risks associated with AI, ensuring that its deployment is safe, ethical, and […]
EDGAR’s unintended effects: The delicate balance between transparency and competitive advantage
The Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system, introduced by the SEC, aimed to increase transparency and accessibility of corporate filings. However, a recent study titled „Unintended Real Effects of EDGAR: Evidence from Corporate Innovation“ by Michael Dambra, Atanas Mihov, and Leandro Sanz explores how this system has impacted corporate innovation in unexpected ways. […]
The Art of Audit: How Firms and Partners Shape KAM Reporting
The world of auditing is constantly evolving, and how audit firms and individual partners report key audit matters (KAMs) can significantly impact financial transparency. A recent study by Rousseau and Zehms, titled „It’s a Matter of Style: The Role of Audit Firms and Audit Partners in Key Audit Matter Reporting,“ published in Contemporary Accounting Research, […]
Boosting Audit Quality with Global Talent: The Role of H-1B Visa Holders
The accounting profession continually evolves, adapting to global talent dynamics and regulatory landscapes. A recent study by Frost, Jing, Shang, and Su, published in Contemporary Accounting Research, titled “Foreign Labor and Audit Quality: Evidence from Newly Hired H‐1B Visa Holders,” explores a particularly intriguing facet of this evolution: the influence of foreign labor on audit […]
Behind the Veil: How Managers Manipulate Disclosure Complexity
In the world of corporate communications, how and what information is disclosed to the public can significantly impact investor perceptions and market movements. The recent study by Cyrus Aghamolla and Kevin Smith, published in the Journal of Accounting and Economics, titled “Strategic Complexity in Disclosure,” dives into this very topic, unraveling the sophisticated strategies […]
Generative Artificial Intelligence’s Ethics of Authorship and Ownership
A recent editorial essay by Gazi Islam and Michelle Greenwood delves into the ethical complexities surrounding Generative Artificial Intelligence (GenAI) and its impact on academic authorship. Published in the Journal of Business Ethics, the essay argues that GenAI draws on a “hypercommons” of collectively produced inputs and labor that are largely invisible or untraceable. This […]
The September Spike: Unveiling Seasonal Trends in SEC Enforcement Actions
A new study by Dain C. Donelson, Matthew Kubic, and Sara Toynbee, published in the Journal of Accounting and Economics, delves into the patterns of enforcement actions by the Securities and Exchange Commission (SEC), uncovering a significant increase in activity in September each year. This phenomenon, termed the „September spike,“ suggests a potential inconsistency in […]
The Role of National Cultures in Shaping Accounting Practices: Insights and Future Research Directions
In the realm of accounting, the influence of national culture is profound and pervasive, shaping not just practices but also values and systems across different countries. This crucial relationship is the focus of a comprehensive study by Stephen B. Salter, Hong Kim Duong, and Gaurav Gupta, published in the Journal of International Accounting Research. The […]
Navigating the Risks: Auditor-Provided Tax Services and Increased Regulatory Scrutiny
The provision of tax services by auditors to their audit clients has long been a topic of debate, particularly concerning the implications for independence and objectivity. A recent study published in the Journal of the American Taxation Association by Zhuoli Axelton, Kerry K. Inger, Mollie E. Mathis, and Abbie E. Sadler, sheds light on how […]
Enhancing Nonprofit Governance Through Financial Audits
In the nonprofit sector, where transparency and accountability are paramount, financial audits play a crucial role in shaping governance practices. Raphael Duguay’s study, published in The Accounting Review, offers significant insights into how audits impact the management and operational policies of nonprofit organizations. The study utilizes a sophisticated regression discontinuity design to explore how financial […]
Mapping the Influence: A Bibliometric Analysis of the Journal of International Accounting Research
The Journal of International Accounting Research (JIAR), since its inception in 2002, has been a cornerstone for disseminating high-quality, internationally relevant accounting research. A new study by Jirada Petaibanlue and Edward Lee, featured in JIAR itself, employs bibliometric analysis to delve into the journal’s publications, uncovering trends in authorship and thematic focus over the years. […]
The Art of Deception in Financial Reporting: Exploring Fractional Truths
In the ever-evolving landscape of financial reporting, the interaction between client management and external auditors is pivotal. A recent study published in the journal Behavioral Research in Accounting delves into the murky waters of deception in these critical interactions. Authored by Mary P. Durkin, S. Jane Jollineau, and Sarah C. Lyon, the research uncovers the […]
Balancing the Books and the Burden: Workload’s Impact on Auditors‘ Careers
The audit profession, known for its demanding busy seasons, faces scrutiny not only for the impact of high workloads on audit quality but also on its appeal as a career choice. This is highlighted in a recent study by Marlies de Vries and Roland F. Speklé, published in Behavioral Research in Accounting, which examines how […]
Visualizing Financial Insights: The Rise of Infographics in 10-K Filings
In the dense, often opaque world of corporate financial disclosures, the use of infographics is becoming increasingly prevalent, transforming how companies communicate complex financial data. A study by Theodore E. Christensen, Karson E. Fronk, Joshua A. Lee, and Karen K. Nelson, featured in the Journal of Accounting and Economics, takes a comprehensive look at this […]
Accounting History Research in the New Millennium
In a recent study published in the Accounting Historians Journal, Nicola Rappazzo, Carmelo Marisca, and Massimo Sargiacomo explore the development of accounting history research from 2000 to 2023 through a bibliometric analysis. By examining 1,044 documents, the study sheds light on publication patterns in specialized international journals, offering a comprehensive view of the field’s evolution. […]
Embracing Bayesian Inference for Enhanced Audit Evidence
In a thought-provoking article published in AUDITING: A Journal of Practice & Theory, Koen Derks, Jacques de Swart, Eric-Jan Wagenmakers, and Ruud Wetzels advocate for the adoption of Bayesian inference in auditing. The paper highlights the limitations of frequentist statistical methods, commonly used by auditors, in providing the robust statistical evidence required by audit standards. […]
Exploring the Link Between Executive Compensation, Corporate Governance, and Voluntary Disclosures
A recent article published in the Journal of Applied Accounting Research by Praveen Kumar delves into the intricate relationship between executive compensation, corporate governance attributes, and voluntary disclosures. The study also examines the moderating role of audit quality in these dynamics. Utilizing data from 90 Indian firms listed on the S&P BSE index for the […]
SEC Charges Investment Advisers for AI Washing
In a recent announcement, the U.S. Securities and Exchange Commission (SEC) disclosed settled charges against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for falsely representing their use of artificial intelligence (AI). The firms have agreed to settle the charges by paying a total of $400,000 in civil penalties. The SEC’s Chair, Gary […]
Selling Who You Know: Ethical Implications of Sharing Others‘ Data
In a thought-provoking article published in the Journal of Business Ethics, Susanne Ruckelshausen, Bernadette Kamleitner, and Vincent Mitchell investigate the ethical dilemmas surrounding the sharing of others‘ data through apps. Many consumers agree to app requests for access to their contacts or photos, unknowingly or disregarding the fact that this also grants access to others‘ […]
Navigating the Risks of Over-Reliance on Digital Decision Aids in Auditing
In a rapidly evolving technological landscape, accounting firms are increasingly adopting digital decision aids (DDAs) to ensure consistency in audit methodologies and compliance with regulatory expectations. While these tools are promoted for their ability to streamline processes and enhance decision-making, there is a growing concern about the potential over-reliance on such systems, which can undermine […]
Understanding the Roots of Auditors‘ Skeptical Actions: Field-Based Insights
In a recent study published in AUDITING: A Journal of Practice & Theory, Kris Hardies, Sanne Janssen, Ann Vanstraelen, and Karla M. Zehms explore the factors influencing auditors‘ skeptical actions through field-based evidence. The study, which includes over 600 auditors from six firms, identifies key antecedents to skeptical behavior. The researchers found that the most […]
Whistleblowing, Corporate Governance, and Machiavellian Traits: A Trio Influencing Fraud Deterrence
Whistleblowing provisions, corporate governance culture, and individual personality traits like Machiavellianism play critical roles in shaping responses to potential fraudulent activities within organizations. A recent study in the journal Behavioral Research in Accounting explores how these elements interact to influence the deterrence of unethical behavior in corporate settings. The study, conducted by D. Jordan Lowe […]
SEC’s OMWI FY 2023 Annual Report Showcases Commitment to Diversity and Inclusion
The Securities and Exchange Commission’s Office of Minority and Women Inclusion (OMWI) recently unveiled its Fiscal Year (FY) 2023 Annual Report, highlighting significant strides in advancing diversity, equity, inclusion, and accessibility within the agency and among regulated entities. This release follows the publication of the 2022 Diversity Assessment Report, which reviews the diversity policies and […]
Advancing Robotic Process Automation Governance: Insights from a New Framework
Robotic process automation (RPA) is reshaping the landscape of accounting practices, yet concerns regarding internal controls and governance surrounding RPA are becoming increasingly apparent. In a groundbreaking research article published in the Journal of Information Systems, Marc Eulerich, Nathan Waddoups, Martin Wagener, and David A. Wood present a pioneering framework aimed at addressing these concerns […]
Using AI and Machine Learning for Effective Risk Management
In the ever-evolving landscape of finance, risk management stands as a cornerstone for stability and growth. With the advent of artificial intelligence (AI) and machine learning, traditional approaches to risk management are undergoing a profound transformation. A recent working paper by Saqib Aziz from Rennes School of Business and Michael M. Dowling from Dublin City […]
Enhancing IT Compliance Training through Basic Gamification Techniques: Insights from Experimental and Field Studies
In an era where robust internal controls are paramount for safeguarding information systems, companies are increasingly turning to innovative approaches to enhance IT security and data privacy training. However, traditional compliance training often falls short in engaging employees and effectively conveying critical concepts. In response to these challenges, Ryan J. Baxter, D. Kip Holderness, Jr., […]
Technology, Ethics, and the Pandemic: How Accounting’s Key Players Adapted
During the unprecedented challenges of the COVID-19 pandemic, every sector had to navigate rapid changes, not least the world of accounting. A recent study by Emilio Boulianne, Annie Lecompte, and Mélissa Fortin, published in „Accounting and the Public Interest,“ explores how pivotal actors within the accounting industry—namely the Big 4 accounting firms, professional accounting associations, […]
Auditors Respond to Non-Financial Misconduct with Higher Fees and Increased Scrutiny
Recent research by Bidisha Chakrabarty, Michael Hyman, and Gopal V. Krishnan has shed light on how auditors react to non-financial misconduct within corporations. Their study, published in the International Journal of Auditing, utilizes a novel database to track penalties from federal, state, and local agencies for violations not directly related to financial reporting. The findings […]
Navigating AltData: A Risk and Opportunity for Organizations
In a world where data proliferates at an unprecedented rate, understanding and managing alternative data, or ‚altdata‘, is becoming increasingly critical for organizations. Altdata encompasses information that exists outside of traditional financial and regulatory reporting channels—ranging from social media insights to geolocation data and beyond. As the digital landscape expands, so does the scope and […]
SEC Settles with Skechers Over Undisclosed Payments and Loans to Executives
The Securities and Exchange Commission (SEC) has finalized a settlement with California-based footwear giant, Skechers U.S.A. Inc., concerning undisclosed payments to family members of executives and undisclosed loans to its executives. Skechers has agreed to pay a $1.25 million civil penalty to resolve these charges. The SEC’s findings reveal that from 2019 through 2022, Skechers […]
Integrating ChatGPT and AI into Higher Education: A Transformative Approach
The rapid advancement of artificial intelligence (AI) in education is reshaping how academic institutions operate and interact with students and faculty. A standout example of this integration is ChatGPT, a generative AI developed by OpenAI. Based on the GPT-3.5 model, ChatGPT offers a conversational interface that can simulate human-like interactions, making it an invaluable tool […]
Beyond Numbers: The Strategic Auditor Choice Enhancing 10-K Disclosures
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 […]
Navigating Fraud Risk: The Critical Role of Internal Auditors Revealed
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 […]
Empowering Change: How Boardroom Gender Diversity Reforms Shape Institutional Monitoring and Corporate Governance
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 […]
AI Risks Unveiled: How to Safeguard Your Business in the Age of Generative AI
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 […]
Diversity’s Price Tag: The Hidden Cost of Being an Ethnic Minority Audit Partner
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 […]
AI Governance: The New Frontier for Audit Committees
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’ […]
Unveiling the Iceberg: The Hidden Scale of Corporate Fraud and Its Global Financial Impact
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 […]
The Expanding Role of Internal Audits in the ESG Era: Navigating New Regulations and Sustainability Reporting
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 […]
Who’s to Blame? Unraveling AI’s Moral Dilemmas
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 […]
Navigating the Future: The SEC’s New Climate-Related Disclosure Rules
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 […]
KPMG’s 2024 Guide to the Evolving Landscape of Internal Audit
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 […]
A New Era in Nonprofit Accounting: Trends, Data Sources, and Research Opportunities
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 […]
The Dark Side of Performance Targets: When Employee Effort Leads to Counterproductive Behaviors
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 […]
Breaking Down Walls: How Internal Auditors Are Shaping Future-Ready Organizations
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 […]
Unlocking Secrets to Better Fraud Detection: Strategies That Work
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 […]
From Crisis to Confidence: The Evolving Landscape of Accounting Replication Studies
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, […]
Market Predictability and Investor Behavior: The Role of Periodic Financial Disclosures
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 […]
Unlocking Profitability: How the Speed of Filling Job Vacancies Predicts Future Success
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 […]
„Should I Stay or Should I Go?“ Navigating Ethical Dilemmas and Turnover Intentions in the Auditing World
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 […]