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The purpose of this article is to provide a selective and comprehensive literature review based on previous research within auditing and enterprise systems (ES). This is done to identify research gaps, propose directions for future research and guide researchers and practitioners on how to better synthesize these two areas. Interaction between ES and auditing is in need of more academic research and practical investigation, which may lead to the development of better solutions, guidelines and frameworks.

A total of 31 academic studies from 2000 to 2010 were included in this study. After reading these studies, different areas had been selected and were addressed in five categories: the future of audit in ES environment, modern audit tools and techniques, changes of auditors' role, differences in perceptions between financial auditors and IT auditors, ERP and compliance with regulations.

ES implementation results in audit process reengineering and increases the need of continuous monitoring of transactions. The presence of IT auditors becomes critical, while financial auditors are asked to enhance their skills in order to be able to conduct effective audit tests. Modern audit tools and techniques must be used so that internal control processes will be appropriate for an ES.

It is not an exhaustive list and some relevant publications might have been overlooked. Much literature has been scanned by reading the title only. In order to conduct a comprehensive review the topical focus was kept relatively narrow on auditing and ES.

Researchers and practitioners must take into consideration the interaction between ES and auditing in order to advance research in this area. Companies must understand the changes that occur in the audit procedure due to ES implementation, so that they will design efficient audit tests and auditors must enhance their knowledge in order to be able to conduct these tests effectively.

This study uncovers and classifies current research within auditing and ES (focusing mostly on ERP systems).

The purpose of the paper is to examine the extent to which there is shared meaning of the concept of auditor independence between the three major groups of parties on the demand and supply sides of the audit services market – auditors, financial report preparers and financial report users.

The paper utilises the measurement of meaning framework (semantic differential analysis) originally proposed by Osgood et al. in 1957. The framework is used to investigate the extent to which there is shared meaning (agreement in interpretations) of the independence concept, in response to alternative audit engagement case contexts, between key parties to the financial reporting communication process. The study's research data was collected in the period March 2004‐May 2005.

Findings indicate a robust and stable single‐factor cognitive structure within which the research participants interpret the connotative meaning of the auditor independence concept. An analysis of the experimental cases finds similarities in connotations (interpretations) of an audit firm's independence for the participant groups for most cases, with the exception of cases involving the joint provision of audit and non‐audit (taxation) services.

The usual external validity threat that applies to experimental research generally applies to the study. That is, the results may not be generalisable to settings beyond those examined in the study. An important implication of the study is that it emphasises the continuing problematic nature of the joint provision of audit and non‐audit services, even in situations where the non‐audit services comprise only traditional taxation services.

The study is the first to examine the concept of auditor independence by means of the Osgood et al. measurement of meaning research framework using, as research participants, the three major groups on the demand and supply sides of the audit services market.

Big Data analytics (BDA) and its implications for the accounting profession continue to be a key issue that requires more research and evaluation. As a result, the purpose of this study is to evaluate the impact of BDA on financial reporting quality, as well as to assess the accounting challenges associated with Big Data. It provides qualitative evidence from Canada.

This study used a qualitative approach to ascertain the thoughts and perceptions of auditors, financial analysts and accountants at Canadian audit and accounting firms in BDA and its impact on financial reporting quality, using semi-structured interviews. To obtain their consent to participate in the interview, 127 auditors, financial analysts and accountants from Canadian audit and accounting firms were initially approached. The final number of respondents was 41, representing a response rate of 32%.

The authors’ findings underscored the relevance of Big Data and BDA in affecting financial report quality and revealed that BDA had a significant effect on improving financial reporting quality. Big Data improves accounting reporting and expert judgment by providing professional. In summary, participants agreed that when analytical methods in Big Data are implemented effectively, businesses may possibly achieve a variety of benefits, including customized goods, simplified processes, improved risk assessment process and, finally, increased risk management.

The authors’ findings indicate that BDA may help predict investment returns and risks, estimate future investment opportunities, forecast revenues, detect fraud and susceptibility early and identify economic growth opportunities. As a result, auditors, financial analysts, accountants, investors and other strategic decision-makers should be aware of these findings to make informed choices.

Big Data has become the norm in recent years; accountants and other decision-makers have struggled to analyze massive amounts of data. This limits their capacity to profit from such data even more. Therefore, this study is motivated by the lack of research on Big Data’s influence on financial report quality.

Materiality is a critical and challenging auditing concept. To help auditors improve their materiality judgments, the authors provide examples from Judaism, primarily due to its longevity and the richness and variety of its stories. The authors show how Judaism interprets and applies materiality in many contexts. For each, the authors provide guidance on how auditors might apply these lessons to improve their materiality judgments. The authors examine five areas where Judaic examples can inform modern auditing including: (1) considering both quantitative and qualitative measures; (2) recognizing that small quantitative changes can lead to material qualitative effects; (3) understanding that ignoring small issues can become a slippery slope; (4) considering the importance of financial statement users’ needs in developing materiality criteria; and (5) prioritizing substance over form. In all examples, context is a critical factor to consider when applying materiality. These results should be of interest to auditors, financial statement users and others.

This experimental study investigates the connotative (measured) meaning of the concept “auditor independence” within three audit engagement case contexts, including two acknowledged in the literature to represent significant potential threats to independence. The study’s research design utilises the measurement of meaning (semantic differential) framework originally proposed by Osgood et al. (1957). Findings indicate that research participants considered the concept of independence within a two factor cognitive structure comprising “emphasis” and “variability” dimensions. Participants’ connotations of independence varied along both these dimensions in response to the alternative experimental case scenarios. In addition, participants’ perceptions of the auditor’s independence in the three cases were systematically associated with the identified connotative meaning dimensions.

This paper aims to examine the perspectives of auditors, regulators and financial report preparers on the effects of key audit matters (KAMs) reporting on audit effort, fees, quality and report transparency.

The authors conducted 21 semi-structured interviews with stakeholders (13 Audit Partners, 5 Chief Financial Officers and 3 regulators) and thematically analysed the interviews. They use the frame of “Paradox of Transparency” to explain the findings.

Auditors perceive that the overall quality control of their audits has improved both in the planning and execution stages, and such improvement can mostly be attributed to the coercive pressures from professional bodies and regulators. Nevertheless, audit fee remains unchanged. Auditors disclose industry generic items and descriptions of KAMs, sometimes masking the real problem areas of the clients. Even after improving the performative audit quality, transparency of audit reporting has not improved. Issues that warrant going concern qualifications or audit report modifications are now reported as KAMs. Hence, KAMs reporting might make the audit report less transparent.

Localised audit environments and institutions affect the transparency of KAMs reporting. Without attention to corporate governance and auditors’ independence issues, paradoxically, performative improvement in audit quality (due to the KAMs reporting requirement) does not enhance the transparency of audit reports.

To the best of the authors’ knowledge, this study is the first to provide field-level evidence in Bangladesh and other developing countries about the perceptions of auditors, financial report preparers and regulators on the effects of KAMs reporting on audit efforts, fees, quality and report transparency.

This paper reviews a substantial body of scholarly work on the audit expectation gap (AEG) for many years and aims to construct a new synthesis of the existing knowledge of the AEG discovered by numerous scholars in the world.

A broad search of the literature was conducted using a few AEG related keywords in the Google Scholar search engine and two databases of Scopus and Emerald from 1974 to 2021. Only the articles published in reputable journals concerning the AEG were selected after applying some selection criteria.

The concept of AEG is a multidimensional concept. Different causes for the AEG were identified, and several strategies were summarized into major promising strategies for narrowing it. It was found that the AEG cannot be eradicated entirely from society.

This review of the literature will be of interest to auditors, financial statement users, regulatory agencies, and policymakers, among other parties. Further, this AEG synthesis may be useful in understanding misperceptions and determining how they differ across diverse stakeholders.

There is a dearth of literature review studies incorporating all the facets of AEG. Hence, this study incorporates all those facets, namely research methods and instruments and dimensions used along with causes and mechanisms to narrow down the AEG while addressing the gaps and highlighting the themes for future research. Finally, a fresh, yet more straightforward definition was generated as a result of the comprehensive review of the literature, adding novelty to the extant literature.

The purpose of this paper is to examine the nature and development of corporate accounting regulation in Libya.

Questionnaire survey and semi-structured interview methods were used to collect data. Semi-structured interviews were conducted with external auditors, financial managers, accounting academics and regulators.

This paper found general agreement that the accounting regulation of public corporations and banks is strongly influenced by the Libyan Commercial Code and the Income Tax Law. Although listed companies and the banking sector in Libya are required to comply with International Accounting Standards (IASs), the majority of them still comply with the US Generally Accepted Accounting Principles (US GAAP). Moreover, the conclusion that can be drawn from this study is that the enforcement of IASs through the Libyan Accountants and Auditors Association (LAAA), local auditors and the Libyan Stock Market has not achieved its purpose. The results also indicate that the accounting profession in Libya is still in its infancy and still lacks clear structure in order to develop corporate accounting practice and it appears to play only an important role in retaining external influences on the accounting practice. The empirical results of this research show that the Salter and Niswander (1995) criteria (longevity, setting exam and auditors’ opinion on companies’ financial reports) found that the level of professionalism in Libya is below the required standard.

This paper focuses on corporate accounting regulation and practices and the role of the LAAA in the development of corporate accounting in Libya. This paper, therefore, aims to contribute to the literature by examining the corporate accounting regulation in Libya and fills a gap in international accounting research.

In 2001, the US moved to regulate internal control reporting by management and auditors. While some jurisdictions have followed the lead of the US, many others have not. An important question, therefore, is the relevance of internal control to stakeholders. The more specific issue of the benefits of US-style regulation of internal control reporting is also topical. We review studies on the determinants of internal control quality and its economic consequences for stakeholders including investors, creditors, managers, auditors and financial analysts. We extend previous reviews by focusing on US studies published since 2013 as well as all non-US studies investigating IC quality including countries regulating IC disclosure as well as unregulated settings and both developed and developing economies. In doing so, we identify research questions where evidence remains mixed and new directions in which there are research opportunities.

Three main insights arise from our analysis. First, evidence on the economic consequences of internal control quality suggests that the quality of internal control can have a significant effect on decision making by users of financial information. Second, the results of research on the empirical association between ownership structure, certain board characteristics and internal control quality is generally mixed. Empirical evidence concerning the association between audit committee characteristics and internal control quality generally supports a positive and significant association. Finally, while studies in non-US jurisdictions are increasing, opportunities remain to explore the determinants and consequences of internal control in other jurisdictions. Our review provides evidence for policy makers of whether there are benefits from requiring management and auditors to report on internal control over financial reporting.

The paper analyzes four cases of IAS adoption (Aérospatiale in 1989; Usinor in 1991; Coflexip in 1993; and Péchiney in 1995) to better understand the instructional logics behind the use of alternative or additional standards by French companies in the early 1990s.

The study employs multiple case studies to explain how and why the heterogeneity of adoption (IAS versus US GAAP) is a response to institutional complexity.

This research shows that French companies adopted IAS as long as they were not required to use US GAAP by their financial backers. The results highlight how the companies combine logics to respond to the complexification of the field. The authors outline how endorsement of logics by outside carriers (auditors, financial analysts, stock exchange commissions) and framing of logics by managers evolve in time and space within this complexification process.

This study contributes to the institutional complexity literature in that it focuses on distinct organizational responses to multiple institutional logics. More precisely, the choice of standards in primary consolidated accounts are viewed as an organizational response to compatible and conflicting demands from several levels: home countries, transnational areas and host countries with the aim of raising funds in the US.

This research makes a distinct link between institutional complexity and international accounting standards and US GAAP.