The working paper “When LLMs Go Abroad: Foreign Bias in AI Financial Predictions” by Sean Cao, Charles C. Y. Wang and Xiang Yi investigates how leading language models form stock views outside their home information environments and finds a striking pattern that matters for markets and governance. Comparing predictions from a US-based model and a […]

The working paper “Beliefs about Bots: How Employers Plan for AI in White-Collar Work” by Eduard Brüll, Samuel Mäurer and Davud Rostam-Afschar investigates how firms update expectations once they see credible evidence about automation risk in professional services. Using a large randomized information experiment among tax advisory practices in Germany, the authors compare employers’ prior […]

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 […]

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 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 […]

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 […]

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 […]

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 […]