Auditor Judgments and Decisions in the Digital Era: The Role of Mindset, Medium, and Mode
New technologies like data analytics, artificial intelligence (AI), and smartphones are profoundly changing the work of auditors. Yet, we still know relatively little about how these digital tools influence auditors' thinking and decision-making. Sara Bibler's research sheds light on this and shows that not only technology, but especially the interaction between people and technology, determines the quality of audits.
Innovative mindset strengthens fraud detection
The research shows that auditors who are encouraged to think more innovatively perform better in a data-analytic work environment. They detect fraud more effectively, provide more useful insights for clients, and work more efficiently. According to Bibler, this emphasizes that technological progress alone is not enough: the way professionals think and work plays a crucial role.
Smartphone or laptop makes a difference
Even seemingly small choices, such as the device used to send advice, appear to have an impact. Advice shared via a smartphone is, on average, less critical and skeptical than advice prepared via a laptop, especially when auditors are deeply engaged in the task. When auditors have more psychological distance from the assignment, this difference largely disappears.
This finding suggests that the context in which professionals work can have subtle effects on their judgment. This may prompt organizations to be more mindful of their communication channels in situations where critical judgment is essential.
Doubts about AI's dominant role
Bibler further shows that auditors are less inclined to trust advice when AI plays a leading role in audit preparation, compared to situations where AI only plays a supporting role. Auditors with a less innovative mindset, in particular, appear to be hesitant. This means that the way AI is integrated into work processes can significantly determine how effectively this technology is ultimately used.
Broad societal impact
The results are relevant for accounting firms, supervisory bodies, and policymakers. They demonstrate that audit quality depends not only on technological innovation but also on human factors such as mindset, work context, and trust.
For organizations, this means that investing in technology must go hand in hand with attention to training, work processes, and behavior. For supervisory bodies, the research emphasizes that rules and guidelines must consider the human side of digitalization.
At a time when AI and digital tools are rapidly gaining ground, the research shows that successful innovation is not just about new systems, but especially about how people work with them.
More information on the thesis
