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on Accounting and Auditing |
| By: | Bourveau, Thomas; Breuer, Matthias; Koenraadt, Jeroen; Stoumbos, Robert |
| Abstract: | We describe the development of public company auditing in the U.S. in the early 20th century to gain perspective on current developments in environmental, social, and governance (ESG) assurance. Using a broad sample of historical annual reports spanning four decades, we document three facts: first, the spread of public company auditing occurred steadily over the span of several decades. Second, audit services were initially heterogeneous but became standardized through the audit profession’s efforts and interactions with private and public actors. Third, the role of regulation in those early developments was seemingly limited to codifying existing practices, as the first federal audit regulation was introduced only late in the development of the profession and did not significantly impact capital markets. Our historical evidence helps us understand how we arrived at today’s widely accepted and highly regulated financial audits. It uncovers parallels to and offers lessons for current developments in ESG assurance. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G18; G34; M42. |
| Keywords: | public companies; auditing; regulation; securities exchange act |
| JEL: | G18 G34 M42 |
| Date: | 2025–02–25 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126913 |
| By: | Zorica Bozhinovska Lazarevska (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Ivan Dionisijev (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Bojan Malchev (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Todor Tocev (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Marina Trpeska (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Atanasko Atanasovski (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Zoran Minovski (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje) |
| Abstract: | Purpose. In an era marked by rapid corporate changes and evolving business paradigms, internal auditing (IA) is crucial for ensuring organizational integrity, transparency, and effective risk management. Pizzi et al. (2021) emphasize the need for integrating digital transformation into IA education through tools like data analytics and continuous auditing, enhancing decision-making and fraud detection. Similarly, Coetzee and du Plessis (2020) highlight the importance of soft skills, while studies such as those by Popescu-Grădișteanu and Mocuta (2023) and Fonseca et al. (2020) connect IA education to improved risk assessment, transparency, and governance. Hay (2017) and Crockett (1993) further advocate for interdisciplinary and ethical approaches to better prepare graduates for growing professional demands. This research addresses the pressing need to sustain and advance IA by engaging students from various academic backgrounds beyond traditional Accounting and Auditing programs. Integrating insights from fields like E-business, Finance, and Management, the study aims to close educational gaps and enhance the preparedness of future internal auditors. This paper underscores the importance of recruiting, educating, and empowering a multifaceted workforce to ensure IA’s continued relevance and effectiveness in addressing today’s complex business challenges. Design/methodology/approach. To examine the potential of an interdisciplinary approach in sustaining IA as a profession, this study employs a multi-phase research design, encompassing a comprehensive literature review and data collection through student workshops, focus groups, and interactive activities. Relevant insights from professional bodies, including IIA Global, ACFE, IFAC, ISACA, AICPA, ICAEW, CIPFA, INTOSAI, and major auditing firms, informed the study framework. Four thematic workshops featured experienced practitioners and professors who presented and discussed core IA issues with students. In a focus group of 36 students from the Faculty of Economics-Skopje, UKIM—30% in Accounting and Auditing, and 70% from other majors (30% E-business, 17% Finance, and 23% Management and Entrepreneurship)—data were gathered in four complementary phases. Methods included two questionnaires, a psychological-educational game, and team-based research projects. The research centered on students’ perceptions of several key topics: The strategic importance, role, and responsibilities of IA within an organization (research questionnaire); IA’s influence on internal controls and corporate governance structures (research questionnaire); Identification of potential challenges in recruiting qualified IA professionals and proposed solutions for closing this gap (psychological-educational game); Reflections on necessary changes in IA education, including curriculum updates, skill requirements, and alignment across higher education institutions (team research projects). Findings. Results from the first thematic research revealed that students view IA as an essential function that extends beyond traditional financial audits, contributing directly to organizational success by improving processes, values, and goal alignment. Key IA focus areas identified include enterprise risk management (ERM), fraud prevention, regulatory compliance, and financial oversight. The second thematic survey showed diverse perspectives across academic majors: E-business students most strongly emphasized IA’s role in strengthening internal controls and corporate governance, followed by students in Accounting and Auditing, Management, and Finance. In the third thematic research, an interactive psychological-educational game prompted students to collaboratively create a “Future Memory Statement” envisioning IA’s evolution over the next decade. Their consensus: “As internal auditors, we observed that disruptive technologies have reshaped corporate operations, presenting new risks and opportunities. By 2034, this challenge was addressed by recruiting students with diverse educational backgrounds and expanded skill sets, maintaining IA’s relevance and adaptability.” This future-oriented vision aligns with the IA Foundation’s “Internal Audit: Vision 2035” initiative. The fourth phase involved a content analysis of student research projects by major, where students overwhelmingly agreed that IA should be integrated into diverse educational programs, including Finance, Management, E-business, and Economics. Essential skills identified included analytical and critical thinking (75%), communication (68%), risk management (61%), and accounting knowledge (50%). While the IA curriculum at the Faculty of Economics-Skopje aligns with those of prominent higher education institutions, students highlighted the need for more practical case studies and collaborative projects with industry partners to enhance real-world application. Originality/value. This study offers a fresh perspective on advancing IA education through an interdisciplinary lens, emphasizing the necessity of broadening IA curricula beyond traditional domains. By actively engaging students from various academic backgrounds, such as E-business, Finance, and Management, this research stresses the need to expand IA’s educational scope to prepare a workforce ready to tackle diverse corporate challenges. The incorporation of a psychological-educational game to explore real-world problem-solving provides an innovative pedagogical approach, enriching students’ practical understanding. Furthermore, the findings highlight the critical need for ongoing curriculum alignment with global standards and the inclusion of practical experiences to ensure IA education’s relevance. This study offers significant implications for educational institutions, professional associations, and industry stakeholders committed to fostering a skilled and adaptable IA workforce. |
| Keywords: | Internal Auditing, Interdisciplinary Education, Corporate Governance, Higher Education, Curriculum Development |
| JEL: | M42 I23 |
| Date: | 2024–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:aoh:conpro:2024:i:5:p:59-61 |
| By: | Lades, Leonhard; Lentz, Patricia; Augustenborg, Cara |
| Abstract: | Many governments offer financial incentives to encourage landowners to plant trees. However, administrative burdens associated with these afforestation schemes can hinder grant uptake. This paper builds on existing research on administrative burdens and “sludge, ” which addresses these administrative challenges, by conducting a sludge audit of Ireland’s Afforestation Scheme. We create a journey map that outlines the typical steps involved in securing afforestation grants, assess the level and type of sludge at each step in this process, and conduct a thematic qualitative analysis of stakeholder interviews. The audit reveals that unpredictable timelines in the application process serve as a significant barrier to afforestation efforts. Additionally, the high level of uncertainty surrounding grant application outcomes complicates the decision-making process for landowners, making it challenging to determine whether pursuing the scheme is worthwhile. To address these challenges, we recommend streamlining information requirements, establishing clear timelines, and enhancing communication to reduce friction and facilitate afforestation. |
| Date: | 2025–04–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:8xg2e_v1 |
| By: | Todor Tocev (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje); Marina Trpeska (Ss. Cyril and Methodius University in Skopje, Faculty of Economics – Skopje) |
| Abstract: | Purpose. Management accounting, as a critical area within the broader domain of accounting, has undergone significant transformations over the years, driven by changes in business practices, technological advancements, and regulatory environments (Merigó and Yang, 2016; Cortés-Sánchez, 2019; Balstad and Berg, 2020). This study aims to identify key themes, influential authors/publications, and emerging research areas that have shaped the field through bibliometric analysis. By examining the evolution of research in management accounting, this study seeks to provide insights into the current state of the field and its future directions. Design/methodology/approach. This bibliometric analysis utilized data from the Scopus database, with the search focusing on the keywords "Management" OR "Managerial" AND "Accounting". The initial search identified 66, 822 manuscripts. To ensure the relevance and quality of the dataset, the PRISMA protocol was applied through its four stages: identification, screening, eligibility, and inclusion (Moher et al., 2009). Filtering criteria included the subject area of Business Management and Accounting, English language, and document type restricted to articles, which narrowed the dataset to 13, 078 papers. After removing duplicates, a manual relevance check based on abstract analysis further reduced the dataset, resulting in a final set of 5, 059 papers for the bibliometric analysis. The VOSviewer software was used to analyze co-authorship patterns among authors, organizations, and countries, as well as to perform keyword analysis on abstracts for the entire period and specifically for the last five years (2019-2023). Findings. The dataset spans research papers from 1957 to 2023, with a noticeable increase in publications over time, particularly in recent decades. The trend culminated in 2023 with a peak of 354 papers. The most cited individual authors are Kaplan R.S., Norton D.P., Orlitzky M., Schmidt F.L., and Rynes S.L. Some of the leading journals for management accounting publications are "Accounting, Organizations and Society", "Management Accounting Research", "Accounting, Auditing, and Accountability Journal", "Journal of Cleaner Production", and "European Accounting Review". The United States and the United Kingdom rank as the top countries in the total number of published articles and citations. The analysis reveals that the most prominent research themes, based on keyword occurrences, are performance measurement, cost management, financial management, management control systems, and sustainability. These results align with Balstad and Berg's (2020) and Porporato and Werbin's (2024) findings and insights. Originality/value. This study employs bibliometric analysis to offer an overview of the evolving field of management accounting. It provides valuable insights into research trends, influential authors, and key publications that have shaped the discipline over the past several decades. The findings deepen the understanding of the intellectual foundation of management accounting, guiding future research and aiding academics and practitioners in navigating the complexities of this field. |
| Keywords: | Management accounting, Bibliometric analysis, Research trends |
| JEL: | M30 M31 Q56 |
| Date: | 2024–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:aoh:conpro:2024:i:5:p:57-58 |
| By: | Julian Junyan Wang; Victor Xiaoqi Wang |
| Abstract: | This study provides the first comprehensive assessment of consistency and reproducibility in Large Language Model (LLM) outputs in finance and accounting research. We evaluate how consistently LLMs produce outputs given identical inputs through extensive experimentation with 50 independent runs across five common tasks: classification, sentiment analysis, summarization, text generation, and prediction. Using three OpenAI models (GPT-3.5-turbo, GPT-4o-mini, and GPT-4o), we generate over 3.4 million outputs from diverse financial source texts and data, covering MD&As, FOMC statements, finance news articles, earnings call transcripts, and financial statements. Our findings reveal substantial but task-dependent consistency, with binary classification and sentiment analysis achieving near-perfect reproducibility, while complex tasks show greater variability. More advanced models do not consistently demonstrate better consistency and reproducibility, with task-specific patterns emerging. LLMs significantly outperform expert human annotators in consistency and maintain high agreement even where human experts significantly disagree. We further find that simple aggregation strategies across 3-5 runs dramatically improve consistency. Simulation analysis reveals that despite measurable inconsistency in LLM outputs, downstream statistical inferences remain remarkably robust. These findings address concerns about what we term "G-hacking, " the selective reporting of favorable outcomes from multiple Generative AI runs, by demonstrating that such risks are relatively low for finance and accounting tasks. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2503.16974 |