Auditor Judgments an d Decisions in the Digital Era: The Role of Mindset, Medium, and Mode
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 frau d detection
The research shows that auditors who are e ncouraged to think more innovatively perform better in a data-analyti c 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 enou gh: the way professionals think and work plays a crucial role.
Smartphone or laptop makes a difference
Even s eemingly small choices, such as the device used to send advice, appea r to have an impact. Advice shared via a smartphone is, on average, l ess critical and skeptical than advice prepared via a laptop, especia lly when auditors are deeply engaged in the task. When auditors have more psychological distance from the assignment, this difference larg ely disappears.
This finding suggests that the context in which professionals work can have subtle effects on their judgment. This m ay prompt organizations to be more mindful of their communication cha nnels in situations where critical judgment is essential.
Bibler further show s that auditors are less inclined to trust advice when AI plays a lea ding 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 inte grated into work processes can significantly determine how effectivel y this technology is ultimately used.
Broad societal im pact
The results are relevant for accounting firms, su pervisory bodies, and policymakers. They demonstrate that audit quali ty depends not only on technological innovation but also on human fac tors such as mindset, work context, and trust.
For organization s, 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 consid er the human side of digitalization.
At a time when AI and digi tal tools are rapidly gaining ground, the research shows that success ful innovation is not just about new systems, but especially about ho w people work with them.
More information on the thesis
DESCRIPTION: Auditor Judgments and Decisions in the Digital Era: The R ole of Mindset, Medium, and Mode New technologies like data analytics , artificial intelligence (AI), and smartphones are profoundly changi ng the work of auditors. Yet, we still know relatively little about h ow these digital tools influence auditors' thinking and decision-maki ng. Sara Bibler's research sheds light on this and shows that not onl y technology, but especially the interaction between people and techn ology, determines the quality of audits.Innovative mindset st rengthens fraud detectionThe research shows that auditors wh o are encouraged to think more innovatively perform better in a data- analytic work environment. They detect fraud more effectively, provid e more useful insights for clients, and work more efficiently. Accord ing to Bibler, this emphasizes that technological progress alone is n ot enough: the way professionals think and work plays a crucial role. Smartphone or laptop makes a differenceEven 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 professionals work can have subtle effects on their judgment. This may prompt orga nizations to be more mindful of their communication channels in situa tions where critical judgment is essential.Doubts about AI's dominant roleBibler further shows that auditors are less inc lined to trust advice when AI plays a leading role in audit preparati on, compared to situations where AI only plays a supporting role. Aud itors with a less innovative mindset, in particular, appear to be hes itant. This means that the way AI is integrated into work processes c an significantly determine how effectively this technology is ultimat ely used.Broad societal impactThe results are releva nt for accounting firms, supervisory bodies, and policymakers. They d emonstrate that audit quality depends not only on technological innov ation but also on human factors such as mindset, work context, and tr ust.For organizations, this means that investing in technology must g o hand in hand with attention to training, work processes, and behavi or. For supervisory bodies, the research emphasizes that rules and gu idelines must consider the human side of digitalization.At a time whe n AI and digital tools are rapidly gaining ground, the research shows that successful innovation is not just about new systems, but especi ally about how people work with them.More information on the thesis END:VEVENT END:VCALENDAR