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The Current State and Future of the Audit Profession


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Audited financial statements are intended to be timely and useful in decision making. To remain a valuable and relevant service, auditing must find a way to evolve. This paper summarizes a recent study (“The Future of Audit,” Lombardi, Bloch, and Vasarhelyi [2014]), which conducts an interactive forecasting method to gain expert consensus on the current state of the auditing profession and on how the profession will evolve over the next decade. Expert consensus emerging from the study includes increasing automation of audit procedures, more predictive financial statements, continuous auditing, and maintaining a global outlook on audit transactions. Data Availability: Please contact the corresponding author for data.
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Current Issues in Auditing American Accounting Association
Volume 9, Issue 1 DOI: 10.2308/ciia-50988
Pages P10–P16
The Current State and Future of the Audit
Danielle R. Lombardi, Rebecca Bloch, and Miklos A. Vasarhelyi
SUMMARY: Audited financial statements are intended to be timely and useful in decision
making. To remain a valuable and relevant service, auditing must find a way to evolve.
This paper summarizes a recent study (‘‘The Future of Audit,’’ Lombardi, Bloch, and
Vasarhelyi [2014]), which conducts an interactive forecasting method to gain expert
consensus on the current state of the auditing profession and on how the profession will
evolve over the next decade. Expert consensus emerging from the study includes
increasing automation of audit procedures, more predictive financial statements,
continuous auditing, and maintaining a global outlook on audit transactions.
Keywords: audit; brainstorming; forecasting; information systems; expert panel.
Data Availability: Please contact the corresponding author for data.
The auditing profession is at a crossroads. Technology is advancing rapidly, and the real-time
economy is changing the way information is received and analyzed. However, audits continue to
be conducted at periodic intervals and express opinions on historical data. Audited financial
statements are intended to meet the information needs of investors and creditors, and are to be
timely and useful in decision making. To remain a valuable and relevant service to the investors,
creditors, and others who use audited financial statements, auditing must find a way to evolve. This
paper summarizes a recent study (‘‘The Future of Audit,’Lombardi, Bloch, and Vasarhelyi [2014]),
which conducts an interactive forecasting study to gain expert consensus on the current state of
the auditing profession and on how the profession will evolve over the next decade.
Danielle R. Lombardi is an Assistant Professor at Villanova University, Rebecca Bloch is an Assistant Professor at
Fairfield University, and Miklos A. Vasarhelyi is a Professor at Rutgers, The State University of New Jersey, Newark.
We thank the expert panels of participants for allowing us to utilize them and their resources and expertise in audit. We
also thank the editors of the journal and the anonymous reviewers for their helpful feedback and comments, as well as
giving us the opportunity to share our research through this journal.
Submitted: September 2014
Accepted: November 2014
Published Online: November 2014
The Financial Accounting Standards Board’s Conceptual Framework states that to meet the
needs of financial statement users, financial statements must be useful for decision making, in that
they are relevant and reliable; in order for financial statements to be relevant, they must be timely.
Before the Internet was widely available and utilized, periodic financial statements were the
primary source of information about a company’s financial condition, so periodic audited financial
statements were considered to be timely. Now, with the Internet and with the widespread use of
technology, corporations have the ability to provide information to the public in real time. Although
companies do not disclose in real time, economic effects are very rapid in the real-time economy
(Vasarhelyi and Greenstein 2003;Vasarhelyi and Alles 2005). New technologies, along with the
evolution of large, interconnected datasets, allow for more rapid analyses of large amounts of data,
providing the potential for forward-looking predictions about those data, which can identify and
prevent potential problems (Vasarhelyi, Alles, and Williams 2010). This technology allows for
potentially ‘‘on-demand’’ analysis and auditing of information that changes frequently or has the
potential to be materially wrong. Closer monitoring of this type of information may ultimately lead to
costs savings for companies and investors by predicting and preventing potential issues.
The accounting literature has documented that the use of Internet searches prior to earnings
announcements partially preempts the information content of the announcement (e.g., Drake, N.
Myers, L. Myers, and Stuart 2014), potentially indicating a declining importance of the audited
financial statements as a primary source of information to investors and creditors, who have
access to other sources of information. Other literature has shown that some information in
financial reports, including earnings, have declined in importance over time (Francis and Schipper
1999;Dontoh, Radhakrishnan, and Ronen 2004). Concerns include that audited financial
statements leave out important information such as knowledge (of particular import in valuing high-
technology firms or service providers), or fair value, or provide information in a format that has
declined in value, and that investors have access to competing information that is timelier than the
audited financial statements.
To explore the current state of the auditing profession, and evaluate where the profession is
heading over the next decade, the study enlisted a panel of experts with extensive backgrounds in
the fields of accounting and auditing. The expert participants included academics, consultants,
CPA firm partners and directors, and executives and presidents of national professional
accounting organizations. Participants first participated in a brainstorming session to gain
consensus on the current state of the auditing profession, and then participated in an interactive
forecasting exercise to gain consensus on the future of the auditing profession. The interactive
forecasting exercise (described below in more detail) consisted of two rounds with a discussion in
between, and the experts responded to the same questionnaire before and after discussion. The
questionnaire was developed with input from a team of researchers with varied backgrounds in
accounting and auditing.
Overall results indicated expert consensus about the current state of the auditing profession
and the forecast of the profession a decade out. Experts agreed that although the auditing
profession is beginning to evolve to incorporate new advances in technology and become more
sensitive to changes in the global economy, it will further incorporate technology over the next
decade to allow auditors to produce continuously audited financial statements, have more
guidance in making important judgments, and shift their focus to evaluate risks rather than
focusing on transactional data.
The published study has important implications for the auditing profession as a whole.
Whereas a large body of prior literature has studied the declining importance of financial statement
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information (see, for example, Ramesh and Thiagarajan 1995;Chiang and Venkatesh 1988;Lev
and Zarowin 1999;Francis and Schipper 1999;Brown, Lo, and Lys 1999;Dontoh et al. 2004) there
is little research that either provides empirical evidence about the current state of the auditing
process, or expert consensus about specific ways that the profession will have to evolve to remain
relevant. This research is needed to adequately address the declining importance of financial
statements and make important changes. It will be useful to regulators, researchers, and
practitioners who can use the results to guide them in making necessary modifications to auditing
standards, auditing practices, and research related to these modifications. It also is an important
contribution to the debate about maintaining the usefulness of traditional audited accounting
information as we proceed further into this digital era.
The remainder of this article is organized as follows: the research method used in the study,
then the results, and finally the conclusion.
The study employs two separate research sessions (performed six months apart) and
compiles predictions from each session. At each session both a brainstorming and interactive
forecasting method were employed. The brainstorming exercise involved experts responding to
open-ended questions regarding the current state of the auditing profession. In the first session,
participants were in small breakout groups and each group responded collectively to a set of open-
ended questions about hot topics in the auditing profession. Topics included nonaudit
opportunities, e-audit, audit automation, and the audit process. In the second session, participants
individually responded to open-ended questions covering technologies, audit fees, the relationship
between internal and external audit, audit education (higher education), litigation, and services
provided by CPA firms.
The interactive forecasting methodology (Delphi Method) was first used by the RAND
Corporation and involves providing experts in a field with at least two rounds of a questionnaire,
with structured feedback in between, in order to ultimately obtain their consensus (Bell 1967). The
interactive forecasting method has been shown to provide value to research and to accurately
forecast future occurrences and predict the direction of specific industries (Bell 1967;Holstrum,
Mock, and West 1986;Baldwin-Morgan 1993;Rowe and Wright 1999;Cegielski 2008;Worrell, Di
Gangi, and Bush 2013). The topics covered in the discussion were automation, roles of internal
and external audit, sampling and analytical procedures, audit judgment, XBRL, auditor
compensation, continuous assurance and audit, and frequency of financial reporting.
All questions and topics were developed by a team of researchers. Responses from the
brainstorming exercises were in line with the questions asked during the interactive forecasting
method; further validating that the questions targeted significant areas impacting the future of
audit. Both research sessions were recorded and participant discussions were transcribed for
Each session had eight expert participants with extensive experience and knowledge in
auditing (Figure 1). The participants were a combination of academics, consultants, CPA firm
partners and directors, and executives and presidents of national professional accounting
organizations. Each expert participant had over ten years of experience in the field of auditing.
During the brainstorming session, participants indicated that the profession as a whole has
moved to a paperless environment, highlighting three major areas that have progressed from the
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traditional historical audit function: the audit model, technology and automation, and education.
The audit model has become increasingly risk based and continuous, a progression from the
traditional, periodic historical audit. Auditors’ tools used during fieldwork have also progressed. For
example, paper and pencil checklists have been replaced by automated decision aids and
interactive checklists, which are completed electronically. Other examples include software that
customizes audit plans based on the characteristics of the individual client, analytical software
programs, and the use of XBRL (eXtensible Business Reporting Language) as an enhancement to
auditor fieldwork. Higher education is believed to have progressed to include more current issues
in auditing. There has been an increased emphasis on fraud concerns, the development of risk
analyses, and the differences between IFRS and U.S. GAAP, as well as between the International
Auditing and Assurance Standards and U.S. Statements on Auditing Standards. There has also
been an increasing emphasis on technology and applying analytical procedures. There was also
consensus that the increasing use of technology will require additional training for veteran staff that
may be less up to date with current technology than newer staff.
As for the future of the audit profession, expert participants came to an overall consensus of
forecasts related to the following topical areas: automation of judgment and audit procedures,
reliance on the internal audit function, frequency of external audit opinions and audited financial
statement presentation, and the utilization of XBRL/GL (XBRL Global Ledger Taxonomy
Framework). Topical areas where consensus was reached are discussed below in more detail
and areas of dissent are also highlighted. For a summary of predictions from the experts refer to
Figure 2.
Participants predicted that although automation will continue to increase and become more
enhanced, auditor judgment and decision making cannot be completely automated. More refined
decision aids will be used to assist auditors in developing overall judgments; however, these
The Experts Used in This Study
This figure was obtained from Lombardi et al. (2014).
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judgments will not be completely superseded with technology, as judgment becomes even more
important when using automation. Automation will be used for more repetitive, transactional tasks,
allowing auditors more time to apply their expert judgments to riskier, more pressing areas. To
keep up with changing technology, frequent auditor training will be needed, bringing costs and the
need for staff availability for training. Automation in the future will also vary with company type and
The increased use and continual advancement of technology will bring about new safeguards
to retain companies’, as well as individuals’, privacy (e.g., Health Insurance Portability and
Accountability Act). These safeguards and policies will evolve to stay relevant to the technologies
and data.
Experts agree that external auditors will rely more on the work of internal auditors. Internal
auditors perform similar procedures and assessments as external auditors on a more continual
basis and they are commonly viewed as qualified, objective, and somewhat independent from the
corporate accounting side of the business. Reliance by external auditors on the procedures
performed by internal auditors will allow them to dedicate more time to the riskier issues/areas of a
company. This shift could lead to a reduction in audit time and, consequently, audit costs. There
was some initial dissent in this area among participants who felt that most companies do not have
the resources to invest in training internal audit personnel and expanding internal audit
departments to enable them to take over some of the responsibilities of external auditors.
However, after extensive discussion, participants reached an overall consensus.
Finally, some of the experts forecasted that audits will be performed more frequently, and
even continuously through the use of advanced technology. Other experts forecasted that there
would be little change in the current format of the external audit, because it would not be possible
to perform audits more frequently. For those who forecasted more frequent audits, the consensus
was that instead of quarterly reviews and an annual audit, audits will be cycled throughout the year
and not just at year-end. As a result, financial statements will be produced throughout the year,
rather than just quarterly and annually, with companies having the ability to develop a set of
Highlights and Recommendations Provided by Experts
This figure was obtained from Lombardi et al. (2014).
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financial statements at any time with technologies and software such as XBRL, XBRL/GL, and
Enterprise Resource Planning (ERP) systems. Using this technology, the format of the financial
statements will also evolve to become more forward-looking and transparent, as opposed to
traditional historical statements.
Those who forecasted little change in the format of the external audit indicated that although
information will be released more frequently, there will not be an increase in demand for more frequent
opinions. Additionally, although XBRL is mandated for public companies and foreign private issuers,
and most companies may be capable of taking advantage of technology such as XBRL/GL, little
change in the use of these technologies will occur over the next decade. Dissenters indicated that a
common data model
needs to be created across all ERP systems to use these new technologies,
and companies and educational institutions must improve learning and training in this area.
Our study set out to provide a formal methodology for understanding the current state of the
auditing profession and forecasting the profession a decade in the future. This is an important
contribution to developing understanding of how the auditing profession and audited financial
statements can continue to compete and remain a valuable source of information in a digital world
where information is readily available from many sources. The experts agreed that the profession
has been changing to incorporate new technology, such as XBRL and automated decision aids, to
conduct more effective and efficient fieldwork. In addition, auditors are using technology to better
analyze risks and detect fraud. Audit higher education is also beginning to focus more on
technology, including the use of technology in auditing and auditing through sophisticated
accounting and ERP systems.
The experts also agreed that the profession will significantly evolve over the next decade to
remain relevant and competitive. Technology will allow audits to be performed more frequently,
even allowing audited financial statements to be continuously produced. Increased reliance on
internal auditor work will enable some of this evolution. As a result, technological safeguards will
be put in place to ensure corporate safety and privacy. Although audit judgment will always be an
important component of an effective audit, electronic decision aids will allow auditors to make more
consistent and effective judgments.
To continue a viable and relevant field, the auditing profession, as any profession, cannot
resist advances that may further the efficiency or effectiveness of the process, or it will find itself no
longer viable. Audited financial statements are widely accepted as a gold standard of reliable
financial information. However, the importance of annual financial statements is decreasing. A
decade ago, if a person were told that bookstores would no longer be a viable model, then it would
too have been an unlikely scenario. However, with the increasing use of tablets and smart devices,
there is less and less in actual print, and major retail chains, such as Borders, have gone out of
business, in part because they were not able to predict or make necessary modifications to keep
up with the changing market. The auditing profession does not want to find itself in the same
predicament. This study provides guidance through a panel of experts on where the field is now
and where it will be in a decade. Now it is time to get ready for the future.
Preparing for the future includes keeping up with technology and providing training on a more
frequent basis with how to best use this technology. Automation through the use of advanced
The AICPA’s audit data standard (available at:
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technology provides auditors a means to complete mundane tasks in an efficient and timely
manner, while allowing more time to be spent in complex, judgmental areas. Together,
researchers could develop a meta-information exchange to increase comparability among
companies, industries, and transactions. Also, with internal audit taking on more responsibilities,
the AICPA should provide current guidance regarding external audit placing reliance on the work of
internal audit and how to sufficiently examine the work. Finally, there has been a lag between the
profession and education that should be shortened in order to properly educate and prepare
students for the audit profession. Researchers could examine current audit and accounting
programs and offer suggestions of how to integrate the new and changing environment and
practices into the classroom. Traditionally taught classes might not continue to be a plausible
option in order to stay current with the profession in the classroom.
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... In addition, such annual audited financial reports present a more holistic perspective of the financial position of the entity. Lombardi et al. (2015) further contend that audit firms could extend their offering by providing services such as real-time audits, data forecast validation, an exhaustive data analysis of some systems and processes, and so on. Similarly, Cangemi (2010) argues that given the advancement and implementation of digital technologies in auditing, the persistent emphasis on using retrospective historical audit procedures is an obsolete philosophy. ...
... MA: Management Accounting, FA: Financial Accounting Table I: Overview of empirical studies synthesized (N=3) (insert Table I in page 11) Study Main research approach Participants Lombardi et al. 2015 Qualitative-Delphi study 10 years from now -Academics -Consultants -CPA firm partners and directors -Executives and presidents of national professional accounting organizations Tiberius and Hirth 2019 ...
This study examines the future impact of digitalisation on auditing by synthesising empirical studies, relating them to surveys conducted by accounting bodies, and analysing these findings in relation to extant literature. Based on the synthesis, this study proposes a transitional framework to enable the audit profession to remain competitive. The results show that digitalisation may significantly affect the audit profession in the future. However, the impact is likely to be incremental rather than radical. To remain competitive, the audit profession needs to adopt new metrics, capabilities, skills and evolve its business models to incorporate digital technologies. The contribution of this study is multi-faceted. The propositions and research agenda presented in this study will be beneficial to academics, practitioners, audit regulators, and the general public as they have the potential to form a foundation for addressing future research questions and for the theorisation and empirical testing of audit digitalisation.
... Fraud can occur in any sector, including the private sector, public services, and both national and international organizations (Lombardi et al. 2015;Charlopova et al. 2020). Indonesia has recorded massive cases of fraud since the government's efforts to eradicate corruption in the reform era (Lewis and Hendrawan 2019). ...
... Henry et al. (2007) revealed that there are several weaknesses in the audit system, including the failure of the auditor to identify transactions of related parties that have special transactions. They also stated that notes on financial reports were intentionally misinterpreted or improper in order to influence financial policies issued by investors or report users (Kuhn and Siciliani 2013;Lombardi et al. 2015;Roychowdhury et al. 2019). Table 4 Ways of fraud on Government organizations. ...
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Indonesia is currently in an honesty crisis, especially in financial governance, both in government and private institutions. Our study uses the concept of financial intelligence to identify and collect information related to financial affairs in an organization. We use the opinions of 76 auditors regarding various fraudulent attempts, both with fraudulent financial statements and other corrupt practices in organizations in Indonesia. Our important finding is that a small companies are more likely to commit fraud due to weak supervisors than listed public companies. This is also more likely than family-owned companies and government level organizations. It was indicated by some respondents that local government level organizations with weak supervision are more likely to commit fraud than local governments with close supervision from urban communities. The results of the non-parametric relationship analysis show that although there is a possibility that the more experienced the auditor is, the more able they are to detect fraud and manipulation in the organization, the relationship is relatively weak. Other findings also show that auditors who have a CFE certificate find it easier to find fraud in the company.
... This effectively improves the accuracy and consistency of the data and, in turn, results in better decisions. From an auditing perspective, robotics can enable auditors to automate repetitive tasks of extracting and preparing data to be tested so that auditors can channel their efforts on more value-added functions such as evaluating the quality and the accuracy of the data (Gotthardt et al. 2020;Lombardi, Bloch & Vasarhelyi 2015). ...
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Background: The auditing profession has been burdened with high costs and reputational damage resulting from false results because of a high dependency on manual tasks susceptible to errors or manipulation. Automating repetitive tasks with the use of robots can help minimise these errors to achieve efficiencies and cost reduction. Objectives: This study adopted a Unified Theory of Acceptance and Use of Technology (UTAUT) model to determine the factors influencing organisations to use robotics technology when performing auditing activities. Methods: The study was quantitative, using a survey consisting of 37 questionnaires and two semi-structured interview questions. The sample consisted of 59 professional auditors and 26 non-auditors involved in auditing in South Africa. Results: The study results show that performance expectancy and facilitating conditions are key factors that influence the adoption of robotics in the auditing profession. A lack of training, data quality, and inadequate investment in robotics technology are mentioned as critical barriers to adopting robotics in auditing. Management support, good change management processes and technology skills are quoted as potential key enablers of robotics technology in the auditing profession. Conclusion: The conclusion drawn from the study is twofold. Firstly, the performance management system and the business case for robotics in the auditing process should be linked to the tasks of auditors. Secondly, resources should be made available to support the use of technology in the profession. The study provides more insight into how leaders and management in the auditing profession could influence the adoption of robotics in auditing.
... it must adjust even more due to the impact of digital transformation (Nearon, 2005;Bierstaker, et al.,2001). Currently, the audit profession is in a paradigm shift towards a more digital organization and changes in the profession are becoming unavoidable (Lombardi et al., 2015;Byrnes et al., 2018). Due to this paradigm shift, digitalization should be used by auditors as a tool to obtain and handle information in such a way that guarantees a satisfactory level of audit quality. ...
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The expected effect of digitalization on audit quality
The ongoing transformation of supreme audit institutions (SAIs) external environment is changing the demands and expectations of its stakeholders. The changing environment triggered by technological advancements, increased demand for accountability, and transparency means a change in the way auditing is done. The literature provides evidence of an ongoing technological innovation within the private sector audit. Private sector auditing research has focused mainly on technology adoption and use failing to address the umbrella concept of digital transformation (DT), some even consider processes of DT such as technology adoption and use to be DT. The public sector auditing literature is still yet to commence DT‐related research. This study seeks to fill in this gap and after presenting what DT entails, we applied an exploratory approach through semistructured interview responses, together with other documents from SAIs, to understand how SAIs currently perceive DT and what are their current reactions or actions to transform. The paper analyzes and discusses how SAIs perceive and define the DT phenomenon. The results show that most SAIs still do not master the concept of DT, as they often refer to technology adoption or automation of auditing processes to be DT, notwithstanding a great majority acknowledges the need for DT but lacks the right strategy and resources in place. We saw a few proactive SAIs who are futuristic on the contrary a majority are reacting to change when the need arises, especially during the audit process. The paper provides one of the first empirical investigations into the current DT of public audits. It also proposes a general framework suitable for analyzing the factors involved in the DT in SAIs.
Dünyada olduğu gibi aile işletmelerinin ülkemiz ekonomisi üzerinde oldukça büyük etkisi olduğu bilinmektedir. Ekonomik büyümenin ve istikrarın öncülüğünü oluşturan aile işletmeleri, dünyadaki şirketlerin %90’ına yakınını ülkemizdeki işletmelerin yaklaşık %80’ini oluşturduğu bilinmektedir. 1760’lı yılların başından 1830’lara kadar devam eden ilk Sanayi Devrimi ile üretim faaliyetlerindeki fiziksel gücün yerini makine gücü almıştır. İlk kez 2011 yılında Bosch tarafından Almanya’da Hannover Ticaret Fuarı’nda bahsedilen Endüstri 4.0 ile makineler hem üretim faaliyetlerinin yürütümünü hem de kendilerini yönetmeye başlamıştır. Endüstri 4.0 ile dijitalleşme son hızıyla üretim süreçlerinde yerini almaya başlamış ve birçok iş sürecinde neredeyse insan gücüne ihtiyaç kalmamıştır. Aile işletmelerinin tüm dünyadaki yaygınlığına rağmen dijital ekonomiye yeterli oranda katkılarının olup olmadığı hâlen tartışma konusudur. Genel olarak istikrarı tercih eden aile işletmelerinin teknolojik değişimlere daha uyumlu hâle gelmeleri ve değişime direnç göstermeyen bir yapı oluşturmaları süreklilikleri açısından önem taşımaktadır. Aile işletmelerinde sürekliliğin sağlanması, gelişen teknolojiye anında uyum sağlanabilmesi, dijitalleşme girişimlerinin benimsenmesi ve dijitalleşmeye yönelik faaliyetlerin uygulamaya konulması ile mümkün olabilmektedir. Dünyayı hızlı bir şekilde değiştiren ve iyisiyle kötüsüyle hayatımızda - Aile İşletmelerinde Dijital Dönüşümün Yönetimi - 198 büyük değişimlere yol açan dijitalleşme süreci ile baş edebilmenin yollarından birincisi yüzleşebilmek, diğeri ise değişimi etkin bir şekilde yönetebilmekten geçmektedir. Dijitalleşme işletmelerin her departmanını etkileyen bir unsur olarak ortaya çıkmaktadır. Aile işletmeleri bünyesindeki insan kaynakları departmanı da dijitalleşmenin etkilediği en önemli departmanlar arasında yer almaktadır. Dijitalleşme ile insan kaynakları yönetiminde de dönüşüm kaçınılmaz olmuştur. Dijitalleşmenin etkisi ile aile işletmelerinde iş süreçlerinin dijitalleşmesi, buna bağlı olarak iş organizasyonlarında değişimlerin ortaya çıkması kaçınılmazdır. Değişen yeni iş süreçlerinde çalışacak kişilerin yeni teknik yeteneklere, bilgi ve becerilere sahip olması gerekmektedir. Dijitalleşme ve robotların ortaya çıkması nedeniyle çoğu işin makineler tarafından yapıldığı, bu nedenle çalışanların istihdamlarının sürdürülebilmesi için insan kaynakları yönetiminin önemli bir unsuru olan kariyer yönetimine yenilikler getirilmesi ve çalışanlara yeni yetenek kazanımları sağlanması gerekmektedir. Bu çalışmada aile şirketlerinin insan kaynakları yönetimi kapsamında önemli yer tutan kariyer yönetimi sürecinin irdelenmesi ve çözüm önerilerinde bulunulması hedeflenmiştir.
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Değişim insanoğlunun var olduğu günden bugüne kadar süregelen bir olgudur. Günümüzde değişim düne kıyasla oldukça hızlı bir şekilde gerçekleşmektedir. Bilgi ve iletişim teknolojisinin son 40 yılda yaşadığı dönüşüm ve kat ettiği mesafe göz önünde bulundurulduğunda yaşanan dönüşümün hızı net bir şekilde görülebilmektedir. M.Ö 500’lerde “değişmeyen tek şey değişimdir” diyen İzmirli Herakleitos, bugün yaşamış olsaydı şu anki değişimin hızını hangi vecize ile ifade ederdi acaba? Ya da 1100’lü yıllarda hava, su, ağırlık ve boşluğu kullanarak icat ettiği filli su saati, saz çalan robot veya mumlu saatler ile sibernetiğin ve robotiğin öncüsü kabul edilen El-Cezeri bugün Cizre’de yaşıyor olsaydı mevcut imkânlar ile neler icat ederdi? Bu düşünceler merak uyandıran muammalar olarak tahayyüllerimizde canlanırken her geçen gün dünyada bu düşüncelerin doğal sonucu olan yeni gelişmeler ve dönüşümler silsilesi yaşanmaya devam etmektedir. 1960’lı yıllarda başladığı kabul edilen dijital dönüşüm ise bireysel, örgütsel ve toplumsal alanda pek çok değişimi de beraberinde getirmekte ve tüm hızıyla bu değişimi sürdürmektedir. Önceki zamanlara kıyasla çok daha hızlı yaşanan teknolojik değişimin etkilediği başlıca alanlardan biri de aile işletmeleridir. Aile işletmeleri küresel seviyede dünya iktisadi hayatının, yerel düzeyde ise ülke iktisadi hayatının temel taşıyıcılarından ve başlıca aktörlerindendir. Bu nedenle hayatın hemen hemen her noktasında derin etkileri olan dijital dönüşümün aile işletmelerinde de çok boyutlu etkileri olacağı ortadadır. Temel amacı kar elde etmek, varlığını sürdürebilmek ve toplumsal fayda üretmek olan aile işletmelerinin dijital dönüşümün yıkıcı etkilerinden korunabilmesi, yapıcı etkilerinden ise daha çok istifade edebilmesi için derinliği çok yüksek olan bu dönüşümü viii yönetebilmeleri hayati seviyede önemlidir. Aksi takdirde entropi kaçınılmaz olacaktır. Hatta öyle ki yaşanan Covid-19 küresel salgın koşullarının düne kıyasla çok daha çetin hale getirdiği iktisadi hayat içinde dijital dönüşüme adapte olamayan işletmelerin entropiye nasıl maruz kaldıklarını tüm dünya üzülerek izlemektedir. İşte elinizdeki bu kitap: iktisadi, toplumsal ve ruhsal açıdan böylesine zorlayıcı küresel salgın koşullarında bir araya gelme başarısını gösteren 22 değerli bilim insanının dijital dönüşümün aile işletmeleri üzerindeki etkilerini 17 başlık altında kaleme aldığı emek ve bilgi yoğun bir eser olup, bilim camiasına bu eserin: bilim camiasına ve okurlarına hayırlı ve faydalı olmasını canı gönülden temenni ederim
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ÖZET Dördüncü Sanayi Devrimini yaşadığımız bu çağda, artan sanayileşme ile birlikte işletmelerin faaliyet alanları önemli ölçüde artmıştır. Bu nedenle işletmeler faaliyetlerini yürütürken farklı şekillerde internet, yapay zeka, kodlama yetenekleriyle çalışan bir takım fiziksel cihazlar ve siber-fiziksel sistemler ile bunlarla desteklenen siber güvenlik, bulut teknolojisi ve büyük veri (big data) teknolojisi gibi dijitalleşen dünyanın kazanımlarından faydalanmaktadırlar. Küreselleşme, teknolojik dönüşümler ve rekabet ortamı, çok sayıda alanda olduğu gibi "muhasebe ve denetim" alanında da etkili olmuş ve özellikle güvence hizmetleriyle öne çıkan bağımsız denetim firmalarının faaliyetlerini ve uygulamalarını yeniden gözden geçirmelerine neden olmuştur. Zaman içerisinde yaşanan değişimler denetim firmalarının; denetim süreçlerini, kullanılan yöntem ve prosedürlerini etkilemeye başlamıştır. Veri toplama ve kullanma, iş akışları ve iş süreçlerinin takibi, paylaşma ve süreçteki iletişim, dijital teknoloji ile giderek dönüşmüştür. Bu doğrultuda, denetçilerin bilgi ve becerileri ile kullanılan denetim uygulamaları ve prosedürlerinin bu süreçler ışığında dijital yaşama uyum sağlıyor olması gerekmektedir. Özellikle, denetim firmalarının teknolojik dönüşüme ayak uydurabilmeleri için denetim çalışmalarının geleceğine yönelik altyapı çalışmalarına başlamaları gerekmektedir. Bu çalışma kapsamında teknolojik yeniliklerin ve dijitalleşmenin, bağımsız denetim mesleğine, denetim uygulamalarına, denetçilerin çalışma yaklaşımlarına olan yansımaları ve etkileri ele alınmıştır.
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We are in the age of the fourth industrial revolution. As increasing levels of industrialization boost business activities considerably, benefits of the digitalized world manifest themselves in a number of physical devices with various online, artificial intelligence, and coding capabilities; cyber-physical systems and cybersecurity supported by these systems, cloud technology and big data technology. Globalization, technological transformation, and competition have impacted numerous fields including accounting and audit, leading to a revision of activities and practices among independent audit companies which primarily offer assurance services. Changes over time affect audit processes as well as methods and procedures adopted by audit companies. Digital technology has increasingly transformed data collection and use, the way workflows and processes are followed and shared, and communication behaviors throughout. Auditors hence need to adapt their knowledge and skills, their audit practices, and procedures to digital processes. Audit companies particularly need to begin to lay the infrastructure for future audit activities in an effort to keep pace with the technological transformation. The paper discusses the effects of technological innovation and digitalization on audit profession and practices as well as on auditors’ approach to work
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The purpose of this study is to discuss the current state and future of auditing. Expert consensus is used as a basis to examine the current state of auditing and generate modifications both needed and likely to occur in the audit profession. This study contributes to the literature by using the Delphi method to develop predictions as to the direction of the audit industry and discuss the implications associated with these predictions. If auditors can better understand where the profession stands and where it is headed, then they can better prepare for the future. Some predictions emerging from this study relative to future audit practices include increasing automation of audit procedures, more predictive financial statements, continuous auditing of financial statements and transactions, and an increasingly global perspective regarding audit activities.
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______________________________________________________________________________________________ Manuscript first received/Recebido em 10/12/2013 Manuscript accepted/Aprovado em: ABSTRACT The purpose of this study is to discuss the current state and future of auditing. Expert consensus is used as a basis to examine the current state of auditing and generate modifications both needed and likely to occur in the audit profession. This study contributes to the literature by using the Delphi method to develop predictions as to the direction of the audit industry and discuss the implications associated with these predictions. If auditors can better understand where the profession stands and where it is headed, then they can better prepare for the future. Some predictions emerging from this study relative to future audit practices include increasing automation of audit procedures, more predictive financial statements, continuous auditing of financial statements and transactions, and an increasingly global perspective regarding audit activities.
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Recently, a growing body of literature has suggested that financial statements have lost their value relevance because of a shift from a traditional capital-intensive economy to a hightechnology, service-oriented economy. These conclusions are based on studies that find a temporal decline in the association between stock prices and accounting information (earnings and book values). This paper empirically tests a theoretical prediction arising from the Noisy Rational Expectations Equilibrium model that suggests that the decline could be driven by non information based (NIB) trading activity, because such trading reduces the ability of stock prices to reflect accounting information. Specifically, Dontoh et al. (2004) show that when NIB tradingincreases, the R-squares of a regression of stock price on accounting information declines. Our empirical tests confirm this prediction; i.e., the decline in the association between stock prices and accounting information as measured by R-squares is driven by an increase in NIB trading.
Any attempt at systematic and quantitative forecasting is better than guess work, but there may be a tendency to oversell 'technological forecasting'. Mr P D Wilmot (Physics Bulletin April 1970 p156) cites Jantsch's Technological Forecasting in Perspective as the most comprehensive reference book on this subject.
Prior research suggests that short sellers are sophisticated investors who improve market efficiency by selling stocks when fundamental analysis suggests that future returns will be negative. Alternatively, critics suggest that aggressive short selling is responsible for driving stock prices away from fundamental values. We add to the research examining the role of short sellers in the capital markets by investigating whether short sellers trade on information about future earnings, and the cash flow and accrual components of those earnings. We also examine whether short sellers influence the extent to which current period changes in stock prices reflect future earnings information; that is, we investigate whether short interest levels and changes are associated with the informativeness of changes in stock prices (returns). Using a large sample of observations from 1988 through 2007, we find a negative association between our short interest variables and future earnings, and we find that this negative association is driven by the accrual (rather than cash flow) component of earnings. We also provide evidence that current returns better reflect future earnings when firms are more heavily targeted by short sellers. Finally, we explore the influence of market expectations for future earnings growth on the informativeness of current returns to better understand why short sellers play a role in improving stock price informativeness. We find that the amount of future earnings information in current period returns is greater only when analysts’ long-term earnings growth forecasts are high, suggesting that short seller trades impound information about negative future news that is omitted by optimistic analysts. Overall, our results support the view that short sellers provide credible information to the market by trading on information about future earnings that is yet to be reflected in security prices.
Since the ratification of the Sarbanes-Oxley Act of 2002, both publicly traded companies and their respective financial statement auditors have struggled to comply with the requirements of the legislation. Utilizing three individual Delphi studies, separately, I surveyed partners, managers, and staff associates in the United States from each of the “Big 4” international accounting firms to ascertain from each respective group what knowledge domains and technical skills are most important in the practice of Sarbanes-Oxley–related information assurance compliance. Analysis of the data collected provided the basis for the development and subsequent implementation of a new interdisciplinary business curriculum in information assurance.