Currently, environmental, social, and governance (ESG) reporting is mostly voluntary, granting companies the discretion to choose the information to disclose and the standards to follow, resulting in a lack of comparability across ESG reports. Efforts to combine standards for global comparability are static and may not fit the everchanging, industry-specific nature of ESG topics. This paper proposes a hybrid methodology for extracting simplified, ex post, and dynamic taxonomies based on existing ESG standards and reports to improve the comparability of ESG reporting. This hybrid methodology, which combines text mining techniques with manual processing, balances the efficiency of automatic processes with the effectiveness of human judgment. An example of deriving a simplified environmental taxonomy from European companies’ ESG reports and the Global Reporting Initiative (GRI) standards illustrates the proposed methodology. The methodology could help regulators to develop comparable taxonomies and detect greenwashing and enable various stakeholders to compare companies’ ESG performance.
{"title":"Environmental, Social, and Governance Taxonomy Simplification: A Hybrid Text Mining Approach","authors":"Lanxin Jiang, Yu Gu, Jun Dai","doi":"10.2308/jeta-2022-041","DOIUrl":"https://doi.org/10.2308/jeta-2022-041","url":null,"abstract":"\u0000 Currently, environmental, social, and governance (ESG) reporting is mostly voluntary, granting companies the discretion to choose the information to disclose and the standards to follow, resulting in a lack of comparability across ESG reports. Efforts to combine standards for global comparability are static and may not fit the everchanging, industry-specific nature of ESG topics. This paper proposes a hybrid methodology for extracting simplified, ex post, and dynamic taxonomies based on existing ESG standards and reports to improve the comparability of ESG reporting. This hybrid methodology, which combines text mining techniques with manual processing, balances the efficiency of automatic processes with the effectiveness of human judgment. An example of deriving a simplified environmental taxonomy from European companies’ ESG reports and the Global Reporting Initiative (GRI) standards illustrates the proposed methodology. The methodology could help regulators to develop comparable taxonomies and detect greenwashing and enable various stakeholders to compare companies’ ESG performance.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47895065","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The advances in machine learning have gained close attention from audit practitioners and standard setters. However, fewer than half of accounting programs teach predictive analysis, including machine learning. To develop students’ knowledge and skills of machine learning in auditing applications, this study introduces machine learning to the accounting curriculum and presents a novel hands-on approach for teaching machine learning in auditing courses. The objective is to provide students who have no statistics background and programming skills with the basic knowledge of machine learning and hands-on exercises for predicting auditing tasks. In addition to instruction manuals, this study demonstrates an implementation of machine learning exercises in a graduate-level auditing course.
{"title":"Introducing Machine Learning in Auditing Courses","authors":"Feiqi Huang, Yunsen Wang","doi":"10.2308/jeta-2022-017","DOIUrl":"https://doi.org/10.2308/jeta-2022-017","url":null,"abstract":"\u0000 The advances in machine learning have gained close attention from audit practitioners and standard setters. However, fewer than half of accounting programs teach predictive analysis, including machine learning. To develop students’ knowledge and skills of machine learning in auditing applications, this study introduces machine learning to the accounting curriculum and presents a novel hands-on approach for teaching machine learning in auditing courses. The objective is to provide students who have no statistics background and programming skills with the basic knowledge of machine learning and hands-on exercises for predicting auditing tasks. In addition to instruction manuals, this study demonstrates an implementation of machine learning exercises in a graduate-level auditing course.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45399157","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Robotic Process Automation (RPA) provides organizations numerous benefits in achieving efficiency and effectiveness, but not without risks. Without proper management, the risks posed by RPA may outweigh its intended benefits. RPA risk management has received little attention in prior accounting research and in practice. We discuss risks and control considerations important to achieving the return on RPA investment and maintaining the integrity of the automated processes. We substantiate our discussion by interviewing RPA and risk professionals. Our interviewees suggest that RPA risk management provides incremental value in addition to risk management of Enterprise Resource Planning (ERP) systems, that the skillset needed for RPA risk management may be missing among risk professionals, and that existing risk and control frameworks need to evolve for RPA risk management. Our discussion stimulates future research and helps organizations as they begin to consider RPA risk management.
{"title":"RPA Risk Management: Points to Consider","authors":"Yue (Bright) Hong, Michael Ly, Hui Lin","doi":"10.2308/jeta-2022-004","DOIUrl":"https://doi.org/10.2308/jeta-2022-004","url":null,"abstract":"Robotic Process Automation (RPA) provides organizations numerous benefits in achieving efficiency and effectiveness, but not without risks. Without proper management, the risks posed by RPA may outweigh its intended benefits. RPA risk management has received little attention in prior accounting research and in practice. We discuss risks and control considerations important to achieving the return on RPA investment and maintaining the integrity of the automated processes. We substantiate our discussion by interviewing RPA and risk professionals. Our interviewees suggest that RPA risk management provides incremental value in addition to risk management of Enterprise Resource Planning (ERP) systems, that the skillset needed for RPA risk management may be missing among risk professionals, and that existing risk and control frameworks need to evolve for RPA risk management. Our discussion stimulates future research and helps organizations as they begin to consider RPA risk management.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47793259","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Technological advances in data analytics, robotic process automation (RPA), and artificial intelligence (AI) are transforming businesses and redefining what skill sets are needed in the accounting profession. To prepare students, academic accounting departments must develop strategies to integrate data analytics and emerging technologies into the curriculum. This paper discusses the design process used in a graduate-level advanced data analytics course that incorporates RPA and AI at a public university in the northeastern region of the United States. The paper concludes with a statistical analysis of pre-course/post-course student reflections and feedback surveys as part of a quality assurance initiative [1] . The results suggest strong evidence of student learning related to the course learning objectives. [1] The Institutional Review Board determined this study falls under exempt review status as the purpose was to evaluate the effectiveness of teaching. There were no control or experimental groups.
{"title":"Teaching Advanced Data Analytics, RPA, and Artificial Intelligence in a Graduate Accounting Program","authors":"Cory Ng","doi":"10.2308/jeta-2022-025","DOIUrl":"https://doi.org/10.2308/jeta-2022-025","url":null,"abstract":"Technological advances in data analytics, robotic process automation (RPA), and artificial intelligence (AI) are transforming businesses and redefining what skill sets are needed in the accounting profession. To prepare students, academic accounting departments must develop strategies to integrate data analytics and emerging technologies into the curriculum. This paper discusses the design process used in a graduate-level advanced data analytics course that incorporates RPA and AI at a public university in the northeastern region of the United States. The paper concludes with a statistical analysis of pre-course/post-course student reflections and feedback surveys as part of a quality assurance initiative [1] . The results suggest strong evidence of student learning related to the course learning objectives. [1] The Institutional Review Board determined this study falls under exempt review status as the purpose was to evaluate the effectiveness of teaching. There were no control or experimental groups.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-12-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44403143","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This case analyzes how Zalora has applied various strategies to gain a sustainable advantage in the e-commerce industry and provide solutions that continuously add value to its customers, even during the COVID-19 pandemic. It describes the company’s efforts to capitalize on customer demand and external and internal forces to be more agile and nimble in an increasingly competitive environment. Zalora has introduced several technologies that reflect its digitization, digitalization, and digital transformation efforts. The use of digital technologies has helped Zalora to capture and analyze relevant data from its business processes and customer interactions. The information and automation generated by the technologies have enabled Zalora to continuously improve and reinvent itself to stay ahead of the competition. The challenges and opportunities of digital transformation are also discussed.
{"title":"Harnessing Data and Embracing Digital Strategy at Zalora","authors":"Arif Perdana, T. Wang","doi":"10.2308/jeta-2022-013","DOIUrl":"https://doi.org/10.2308/jeta-2022-013","url":null,"abstract":"This case analyzes how Zalora has applied various strategies to gain a sustainable advantage in the e-commerce industry and provide solutions that continuously add value to its customers, even during the COVID-19 pandemic. It describes the company’s efforts to capitalize on customer demand and external and internal forces to be more agile and nimble in an increasingly competitive environment. Zalora has introduced several technologies that reflect its digitization, digitalization, and digital transformation efforts. The use of digital technologies has helped Zalora to capture and analyze relevant data from its business processes and customer interactions. The information and automation generated by the technologies have enabled Zalora to continuously improve and reinvent itself to stay ahead of the competition. The challenges and opportunities of digital transformation are also discussed.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43743058","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The inclusion of eight emerging topics on future CPA exams challenges educators to prioritize these topics in the accounting curriculum. We analyze the emerging topics and discuss their importance and appropriate teaching locus in light of survey evidence collected from professionals. The results support the preeminence of data analytics above other emerging accounting topics and show the relative importance of other topics based on their statistically significant differences. The results are helpful as educators make decisions about where to teach particular topics as well as their relative emphasis. To augment the analysis, we also examine factors that influence professionals’ judgement of the importance of data analytics to career success and find a positive relationship between years of experience and data analytics’ importance.
{"title":"Analyzing Eight Emerging Topics and Their Importance to Career Success","authors":"Steven A. Harrast, L. Olsen, Yan Sun","doi":"10.2308/jeta-2021-047","DOIUrl":"https://doi.org/10.2308/jeta-2021-047","url":null,"abstract":"The inclusion of eight emerging topics on future CPA exams challenges educators to prioritize these topics in the accounting curriculum. We analyze the emerging topics and discuss their importance and appropriate teaching locus in light of survey evidence collected from professionals. The results support the preeminence of data analytics above other emerging accounting topics and show the relative importance of other topics based on their statistically significant differences. The results are helpful as educators make decisions about where to teach particular topics as well as their relative emphasis. To augment the analysis, we also examine factors that influence professionals’ judgement of the importance of data analytics to career success and find a positive relationship between years of experience and data analytics’ importance.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48295133","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The rise of technology-enabled data analytic tools creates opportunities for firms to improve audit quality related to complex estimates. To combat auditors’ resistance to using technology-enabled tools, firms may promote the sophistication of such tools to their audit staff. However, there is a paucity of research that has examined how auditors’ perceived sophistication of an analytic tool impacts judgments about audit evidence. We conduct an experiment and find that, holding all other information constant, the preferences of an audit supervisor interact with the perceived sophistication of an analytic tool to jointly impact auditors’ anticipated evaluation from a supervisor and, in turn, their evidence assessment decisions when auditing a complex estimate. As such, the promotion of tool sophistication by audit firms can significantly affect the audit of complex estimates to a greater degree than what would be expected. Implications for audit theory and practice are discussed.
{"title":"Is sophistication always better? Can perceived data analytic tool sophistication lead to biased judgments?","authors":"Jared Koreff, Stephen Perreault","doi":"10.2308/jeta-2022-010","DOIUrl":"https://doi.org/10.2308/jeta-2022-010","url":null,"abstract":"The rise of technology-enabled data analytic tools creates opportunities for firms to improve audit quality related to complex estimates. To combat auditors’ resistance to using technology-enabled tools, firms may promote the sophistication of such tools to their audit staff. However, there is a paucity of research that has examined how auditors’ perceived sophistication of an analytic tool impacts judgments about audit evidence. We conduct an experiment and find that, holding all other information constant, the preferences of an audit supervisor interact with the perceived sophistication of an analytic tool to jointly impact auditors’ anticipated evaluation from a supervisor and, in turn, their evidence assessment decisions when auditing a complex estimate. As such, the promotion of tool sophistication by audit firms can significantly affect the audit of complex estimates to a greater degree than what would be expected. Implications for audit theory and practice are discussed.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44311746","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper examines the future of auditing based on responses received on November 22, 2021, from Robert Elliott, who is a retired partner at KPMG Peat Marwick LLP, former chairman of the AICPA Special Committee on Assurance Services, and past Chair of the Board of the AICPA. Robert provided his views on different perspectives of audit practices and changes. His responses in this study cover the value of auditing, the importance of information, the development of information technology, and the future changes in the audit profession.
{"title":"The Future of Auditing: An Interview with Robert Elliott","authors":"Robert Elliott, H. Duan","doi":"10.2308/jeta-10823","DOIUrl":"https://doi.org/10.2308/jeta-10823","url":null,"abstract":"\u0000 This paper examines the future of auditing based on responses received on November 22, 2021, from Robert Elliott, who is a retired partner at KPMG Peat Marwick LLP, former chairman of the AICPA Special Committee on Assurance Services, and past Chair of the Board of the AICPA. Robert provided his views on different perspectives of audit practices and changes. His responses in this study cover the value of auditing, the importance of information, the development of information technology, and the future changes in the audit profession.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42740650","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this paper is to present a prototype using the Backwards Design methodology to enhance a non-AIS course with accounting and technology learning objectives. The backwards design framework also provides an effective means of documenting that technology learning strategies are being deployed in the curriculum, an important benefit for accreditation purposes. By illustrating backwards design in cost accounting this paper provides a blueprint that can be adapted and applied to other non-AIS courses, a helpful tool for curriculum redesign - especially for those who hesitate to add technology topics to their accounting courses.
{"title":"Using Backwards Design to Incorporate Technology into a Non-AIS Course.","authors":"Barbara Lamberton, Robyn L. Raschke","doi":"10.2308/jeta-2021-013","DOIUrl":"https://doi.org/10.2308/jeta-2021-013","url":null,"abstract":"The purpose of this paper is to present a prototype using the Backwards Design methodology to enhance a non-AIS course with accounting and technology learning objectives. The backwards design framework also provides an effective means of documenting that technology learning strategies are being deployed in the curriculum, an important benefit for accreditation purposes. By illustrating backwards design in cost accounting this paper provides a blueprint that can be adapted and applied to other non-AIS courses, a helpful tool for curriculum redesign - especially for those who hesitate to add technology topics to their accounting courses.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44622510","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Michael G. Alles, Rimona Palas, M. Vasarhelyi, Fangbing Xiong
The current financial reporting systems are becoming obsolete due to the increasing sophistication of their users, the changing economic environment, and their inability to utilize current technology. This paper proposes an Extended Business Reporting App that will apply current technology, specifically app-based technology, to collect and integrate traditional variables with exogenous data. The app will customize presentation of the data based on user demands and allow a low-cost comparison among entities.
{"title":"The Case for an App-Based Financial Reporting System","authors":"Michael G. Alles, Rimona Palas, M. Vasarhelyi, Fangbing Xiong","doi":"10.2308/jeta-10827","DOIUrl":"https://doi.org/10.2308/jeta-10827","url":null,"abstract":"\u0000 The current financial reporting systems are becoming obsolete due to the increasing sophistication of their users, the changing economic environment, and their inability to utilize current technology. This paper proposes an Extended Business Reporting App that will apply current technology, specifically app-based technology, to collect and integrate traditional variables with exogenous data. The app will customize presentation of the data based on user demands and allow a low-cost comparison among entities.","PeriodicalId":45427,"journal":{"name":"Journal of Emerging Technologies in Accounting","volume":" ","pages":""},"PeriodicalIF":1.8,"publicationDate":"2022-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44528960","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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