Jay C. Thibodeau

The impact of information technology on the audit process: an assessment of the state of the art and implications for the future

In the future, paperless audits will become commonplace as audit clients increasingly shift to paperless systems and audit software is developed that allows auditors to complete most procedures on‐line. To audit on‐line systems, auditors will have to incorporate on‐line audit software as their primary audit tool and gather evidence electronically. Assesses the current impact of technology on the audit process, and discusses the future implications of technological trends for the auditing profession. More specifically, provides a summary of how information technology has impacted audit planning, testing, and documentation.

The importance of intellectual capital and its effect on performance measurement systems

The first objective of this paper is to provide evidence concerning the relationship between selected organizational characteristics and the perceived importance of intellectual capital. The second objective is to relate the relative importance of intellectual capital to characteristics of the organization’s performance measurement systems. Due to their in‐depth knowledge of their entities’ business operations, internal auditors are used to provide the data for this study. The results of a survey administered to 54 internal auditors indicate that the industry of a company is not related to that company’s attitude about intellectual capital. The size of the internal audit department is related to a company’s attitude about intellectual capital. Companies with larger internal audit departments believe that intellectual capital is very important. Finally, the evidence suggests that business performance measurement systems are being implemented to a larger extent at entities that place a greater emphasis on intellectual capital.

Introducing Students to the Integrated Audit with “Auditing Alchemy, Inc.”

ABSTRACT: “Auditing Alchemy, Inc.” is a comprehensive case developed by PricewaterhouseCoopers. “Alchemy” can help students understand the importance of Accounting Information Systems (AIS) concept...

When Should Audit Firms Introduce Analyses of Big Data Into the Audit Process

ABSTRACT This study investigates how the timing of the consideration of Big Data visualizations affects an auditors evaluation of evidence and professional judgments. In addition, we examine whether the use of an intuitive processing mode, as compared to a deliberative processing mode, influences an auditors use and evaluation of Big Data visualizations. We conduct an experiment with 127 senior auditors from two Big 4 firms and find that auditors have difficulty recognizing patterns in Big Data visualizations when viewed before more traditional audit evidence. Our findings also indicate that auditors who view Big Data visualizations containing patterns that are contrary to management assertions after they view traditional audit evidence have greater concerns about potential misstatements and increase budgeted hours more. Overall, our results suggest that Big Data visualizations used as evidential matter have fewer benefits when they are viewed before auditors examine more traditional audit evidence.

A Supplementary Evening Program for Students in the Introductory Financial Accounting Course

This chapter describes an evening program of study to supplement the introductory accounting course. It uses cases, skits, and interactions with professionals to reinforce the meaning of the conceptual framework of accounting, expose students to ethical issues and conflicts, and demonstrate the lucrative career opportunities available in accounting, which we believe will ultimately help attract the “best and brightest” students to the accounting major and profession. We provide a detailed discussion to facilitate the adoption of the program by introductory accounting instructors at other institutions. Feedback received from all parties, including students, faculty, and accounting professionals, suggests that this curriculum innovation has exceeded the expectations of these stakeholders.

Mathematics and Auditing: How Liberal-Arts Theory and Business-Practice Education Inform Each Other

College courses in mathematics and statistics, particularly those in the first years of the undergraduate curriculum, are increasingly being taught to emphasize conceptual understanding. The mechanical calculations that previously dominated such courses can now be readily and effectively done by technology, freeing instructors to develop each student’s conceptual thinking and problem-solving skills. Statistics education, in particular, has seen a well-documented shift toward the teaching of concepts in the context of applications that matter in business or society.