In their article “Misstatement Detection Lag and Prediction Evaluation,” published in The Accounting Review, Liu Yang and Min Zhu tackle a core blind spot in the fast‑growing literature on misstatement prediction models. They argue that most models look better on paper than they really are in practice because they ignore two realities of financial reporting: […]
As Artificial Intelligence continues to transform economies and reshape corporate landscapes, a crucial question emerges: Will this technological revolution narrow or widen existing gender gaps? In their white paper “Gender Parity in the Intelligent Age” (2025), Silja Baller, Matthew Baird, and colleagues from the World Economic Forum and LinkedIn delve into this question with compelling […]
Robotic Process Automation (RPA) is transforming the way organizations perform routine business activities. It promises faster execution, improved accuracy, and substantial cost savings. However, as automation becomes more widespread, it also introduces new challenges in governance and internal control. The white paper titled „Achieving Effective Internal Control Over Robotic Process Automation Aligning with the COSO […]
The accounting profession is commonly perceived as a domain of rules, precision, and objectivity. However, beyond numbers and regulations lies a powerful influence that has often gone unexamined: visual representation. In their 2025 article titled “Images of the accounting profession and its development: the depiction of females and males in contextual domains”, authors Timur Uman, […]
In the World Economic Forum article „Cybercrime is borderless. This global bust shows how law enforcement can be too“, authors Sean Doyle and Natalia Umansky explain why the only effective response to digital crime is one that crosses jurisdictions and leverages public and private capabilities in concert. Their piece documents how a coordinated international operation […]
Artificial intelligence is transforming internal audit from a function rooted in periodic checks into a dynamic hub of risk insight and organizational value. Deloitte’s article “Artificial Intelligence for Internal Audit” outlines this shift, illustrating how AI—especially generative AI—enables audit teams to evolve beyond traditional compliance exercises. The authors, whose names are featured within Deloitte’s corporate […]
In the World Economic Forum article “Europe is lagging in AI adoption – how can businesses close the gap?”, authors Cathy Li and Andrew Caruana Galizia warn that Europe risks losing ground in the global race for artificial intelligence. Despite strong regulatory leadership and political ambition, European companies remain slow in scaling meaningful AI projects compared […]
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 […]
Cyber risk is one of the most pressing challenges for organizations in today’s digital economy. Unlike other operational risks, it is marked by unpredictability, contagion effects, and exclusively negative potential. In their article “Cyber risk management: an illusion of a risk-based approach”, Sergeja Slapničar, Micheal Axelsen, and Marc Eulerich investigate how organizations measure and manage these […]
Artificial intelligence (AI) is no longer a distant future trend. It is already reshaping corporate governance, internal auditing, and the way employees experience their daily work. While organizations emphasize efficiency and innovation, questions remain about how AI adoption impacts the workforce. In their article “Investigating employees’ occupational risks and benefits resulting from artificial intelligence: An […]
When we look back at the early 1980s, we find the auditing profession standing at a decisive crossroads. Computers were no longer confined to research laboratories or the largest corporations; they had become embedded in everyday business operations. This transformation forced auditors to rethink their tools, methods, and even their professional identity. Two key publications […]
The Chief Economists’ Outlook (September 2025), published by the World Economic Forum, provides an in-depth assessment of the global economy at a time of profound uncertainty. Based on a survey of leading economists from business, policy and academia, the report highlights both the persistence of short-term shocks and the acceleration of long-term structural change. The overall […]
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 […]
The Internal Audit Foundation’s “2026 Global Summary Risk in Focus Report” provides one of the most comprehensive perspectives on the changing risk landscape facing organizations today. Based on over 4,000 survey responses from chief audit executives and audit leaders across 131 countries, as well as regional roundtables and in-depth interviews, the report offers valuable insights […]
Fraud has always been a moving target for organizations, but with the acceleration of digital transformation it is evolving faster than ever before. In the article “Internal audit’s role in AI fraud detection” on Wolters Kluwer, the author argues that traditional rule-based detection systems are no longer sufficient to protect organizations from increasingly complex fraud schemes. Internal […]
Cybersecurity is often framed as a technical problem but new research suggests that the real challenge lies in human behavior. In their article Who cares if we get hacked? The development and testing of a measure of information security apathy, Alan R. Dennis, Sanjay Goel, Jenny Huang and Kevin J. Williams introduce and validate a […]
In their article “Exploring the Potential of GenAI in Qualitative Research: An Internal Audit Expert Study with Leading Multinational Corporations,” Annika Bonrath, Marc Eulerich, Benjamin Fligge, Ronja Krane, Vanessa López Kasper and David A. Wood explore how Generative Artificial Intelligence (GenAI) can enhance qualitative research and reshape the internal audit profession. Drawing on discussions with […]
The Association of Certified Fraud Examiners has published an ACFE Insights post titled „Key Findings from The Impact of Fraud at U.S. Public Companies Benchmarking Report“, written by Rihonna Scoggins. The article distills headline results from a new benchmarking study of U.S. listed companies and frames what boards, audit committees and internal auditors should do […]
In their 2025 article “Robots and Non-Participation in the United States: Where Have All the Workers Gone?” published in the ILR Review, Giuseppe Di Giacomo and Benjamin Lerch examine how industrial automation has contributed to the long-term decline in U.S. labor force participation. Drawing on extensive data from the U.S. Census, the American Community Survey, […]
Whistleblowing is one of the most consequential pressure valves in corporate governance, and a new peer reviewed article shows that what happens inside the audit committee can determine whether concerns are resolved internally or pushed outside the firm. In Gladys Lee’s “Audit committee financial expertise, equity compensation and employee whistleblowing”, the author examines how the […]
The World Economic Forum’s article “Chief People Officers Outlook 2025: Talent strategy amid global disruption” by Isabelle Leliaert captures a striking dual reality for people leaders. It describes how many chief people officers are treading carefully in the present while preparing their organizations for a period of bold redesign. In clear terms, the piece argues […]
In their 2025 article “Determinants and Market Consequences of Audit Partner Changes After Restatements”, James G. Lawson and Daniel A. Street examine a subtle but meaningful response to financial restatements. Instead of replacing their audit firm entirely, some companies opt to change the individual audit partner assigned to their engagement. This decision, though less visible […]
In their thought-provoking article “Can Generative AI Help Identify Peer Firms?”, Yi Cao, Long Chen, Jennifer Wu Tucker, and Chi Wan explore whether large language models (LLMs) like Bard or ChatGPT can match or even outperform traditional systems in identifying a firm’s product market competitors. Published in the Review of Accounting Studies, the study investigates […]
In the ACFE Insights article “Catching What Prevention Misses: The Case for Detective Controls” by Min Peng, the central message is clear. Fraud prevention alone cannot protect organizations from the full spectrum of threats, because determined insiders and agile schemes find ways around even well designed safeguards. Peng argues that durable antifraud programs require a […]
In the article “Are Intergroup Differences Between the Audit Committee and the Rest of the Board Associated with Monitoring Effectiveness?”, authors Marleen Willekens, Katelijne Langendijk, and Lieselot Vankerckhoven address an important question in corporate governance. They ask whether differences in background, expertise, and experience between the audit committee and the rest of the board of […]
As generative artificial intelligence becomes more embedded in workplace practices, questions arise about its deeper implications for collaboration, performance, and professional identity. In their groundbreaking study “The Cybernetic Teammate: A Field Experiment on Generative AI Reshaping Teamwork and Expertise”, Fabrizio Dell’Acqua, Charles Ayoubi, Hila Lifshitz, Raffaella Sadun, Ethan Mollick, Lilach Mollick, and colleagues explore these […]
In the 2025 article “Emotional Intelligence and Business Ethics: Feeling Confident in Doing the Right Thing”, authors Robert W. McGee, Gürhan Kök, and Kevin M. Lowe investigate how emotional intelligence influences ethical behavior in the workplace. Published in Business Ethics: A European Review, the study explores a previously underexamined connection between emotional self-awareness and ethical […]
In a world increasingly shaped by algorithmic decision making, transparency is often seen as the antidote to public skepticism. Policymakers and companies alike have embraced initiatives that give consumers access to explanations about how algorithms operate. But a new study titled Unintended effects of algorithmic transparency: The mere prospect of an explanation can foster the […]
In June 2025, the World Economic Forum published the 19th edition of its Global Gender Gap Report, authored by Silja Baller, Yanjun Guo, and Kim Piaget. This landmark publication, based on a dataset covering 148 economies, tracks global progress towards gender parity across four key areas: Economic Participation and Opportunity, Educational Attainment, Health and Survival, […]
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 […]
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 […]
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 […]
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 […]
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. […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 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, […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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. […]
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 […]
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 […]
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 […]
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. […]
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. […]
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 […]
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 […]
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 […]