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 […]
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 […]
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 […]
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 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 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, […]
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 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, […]
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 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 […]
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 […]
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 […]
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 […]
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‘ […]
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 […]
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 […]
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 […]
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, […]
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 […]
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 […]
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 […]
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? […]
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 […]
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 […]
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 […]
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 […]