The digital transformation of external audit and its impact on corporate governance

Photo : The digital transformation of external audit and its impact on corporate governance

The literature demonstrates the growing interest of digitalization in organizations. The purpose of this paper is to study the influence of digitalization on audit’s business and to understand how it can improve the role of audit as a governance mechanism. A qualitative approach was conducted by interviewing auditors from the five largest auditing firms in France. This paper demonstrates that digital technology is impacting at five key levels audit firms especially the audit role as a governance mechanism.

Digitalization will improve the audit relevance (1) allowing audit firms to extend their offers by proposing new services (2). It will also improve the audit quality mainly by analysing all data’s customer (3). Finally, with the digitalization a new auditor profile emerges (4), enabling the culture of innovation within audit firms (5). Thus, the firm governance will be improved but the managers ‘discretionary power will be limited. This research highlights the importance of implementing digital strategies to provide regulators with the necessary modifications that need to occur for audit standards. It should enable Business School and universities to adapt their training programs according to the audit firms’ expectations.

Author(s)
  • Photo :

    Patricia Baudier Patricia Baudier is an Associate Professor of Marketing. She joined EM Normandie in 2018. She has a PhD in management science from the Institut Mines-Télécom Business School and the Université d’Evry-Val d'Essonne (Université Paris-Saclay) awarded in 2013. Her thesis is on managing claims on Twitter: Impact on satisfaction of the client’s perception of the Community Manager. Her research interests are new technology, consumer behaviour and digital marketing. Patricia spent 28 years working in sales and marketing roles in American multinational companies (Apple France and Kodak Europe/Africa/Middle East).

Photo : Meeting artificial intelligence experts in Dublin

Meeting artificial intelligence experts in Dublin

Artificial Intelligence for Marketing Strategy (AIMS) is a novel MSc program at EM Normandie Business School, led by the program director Agnis Stibe, in collaboration with EPITA Engineering School, led Rabih Haddad, the director of international programs.  Every year, the AIMS program students go for a week-long trip to Dublin. As a part of their curriculum, they have this opportunity to speak with industry experts, as well as to gain deeper knowledge on […]

Read More

Photo : Effects of hedonic shopping motivations and gender differences on compulsive online buyers

Effects of hedonic shopping motivations and gender differences on compulsive online buyers

Online shopping is considered a modern, vigorous, 24/7 available, and routine activity. Consequently, consumers conveniently engage in online shopping activities for immediate pleasure or instant sensual inspiration. These shopping motivations could be indispensable tendencies of compulsive online buyers, who are characterized by unabated and repetitive buying needs. To satisfy these irrepressible urges, compulsive buyers can […]

Read More