Auditor Judgments and D ecisions in the Digital Era: The Role of Mindset, Medium, and Mode
New technologies like data analytics, artificial intelligence (A I), and smartphones are profoundly changing the work of auditors. Yet , we still know relatively little about how these digital tools influ ence auditors' thinking and decision-making. Sara Bibler's research s heds light on this and shows that not only technology, but especially the interaction between people and technology, determines the qualit y of audits.
Innovative mindset strengthens fraud detec tion
The research shows that auditors who are encourag ed 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 seemingl y small choices, such as the device used to send advice, appear to ha ve an impact. Advice shared via a smartphone is, on average, less cri tical and skeptical than advice prepared via a laptop, especially whe n auditors are deeply engaged in the task. When auditors have more ps ychological distance from the assignment, this difference largely dis appears.
This finding suggests that the context in which profes sionals work can have subtle effects on their judgment. This may prom pt organizations to be more mindful of their communication channels i n situations where critical judgment is essential.
Doub ts about AI's dominant role
Bibler further shows that auditors are less inclined to trust advice when AI plays a leading ro le in audit preparation, compared to situations where AI only plays a supporting role. Auditors with a less innovative mindset, in particu lar, 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, superviso ry bodies, and policymakers. They demonstrate that audit quality depe nds not only on technological innovation but also on human factors su ch as mindset, work context, and trust.
For organizations, this means that investing in technology must go hand in hand with attenti on 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 too ls are rapidly gaining ground, the research shows that successful inn ovation is not just about new systems, but especially about how peopl e work with them.
More information on the thesis
DESCRIPTION: New technologies like data analytics, artificial intellig ence (AI), and smartphones are profoundly changing the work of audito rs. Yet, we still know relatively little about how these digital tool s influence auditors' thinking and decision-making. Sara Bibler's res earch sheds light on this and shows that not only technology, but esp ecially the interaction between people and technology, determines the quality of audits. Innovative mindset strengthens fraud dete ction The research shows that auditors who are encouraged to think more innovatively perform better in a data-analytic work envir onment. They detect fraud more effectively, provide more useful insig hts 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. Adv ice shared via a smartphone is, on average, less critical and skeptic al than advice prepared via a laptop, especially when auditors are de eply engaged in the task. When auditors have more psychological dista nce from the assignment, this difference largely disappears. This fin ding suggests that the context in which professionals work can have s ubtle effects on their judgment. This may prompt organizations to be more mindful of their communication channels in situations where crit ical 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 t o situations where AI only plays a supporting role. Auditors with a l ess innovative mindset, in particular, appear to be hesitant. This me ans that the way AI is integrated into work processes can significant ly determine how effectively this technology is ultimately used.