The International Standards on Auditing (ISA) consider the understanding of the control environment as a basic phase of an auditor’s assessment of internal control. This comprehension influences the ...nature, timing, extent and, ultimately, the quality of the procedures managed by auditors. Several studies have investigated the determinants and implications of control environment assessment, internal control evaluation, and audit quality. However, very few studies have adopted a human capital perspective and matched the number and type of the control environment elements considered during control environment evaluation with auditors’ human capital attributes. Starting from these considerations, the paper examines the relationship between auditors’ human capital attributes and the assessment of the control environment. Based on a survey of 100 Italian external auditors, this study reveals that auditors perceive “
Communication and enforcement of integrity and ethical values”
as a relevant element in undertaking control environment assessments. Moreover, the findings indicate that the type of audit firm (Big Four), the regional context (Northern Italy), and the auditor’s degree specialization (accounting, finance and auditing) influence the control environment assessment. This study contributes to the literature by consolidating the use of human capital theory in the auditing domain and presenting new results that help clarify the relationship between human capital attributes and control environment evaluation. We have identified the human capital attributes of auditors that match a control environment evaluation based on all seven elements indicated by ISA 315.
PurposeAlthough research on smart technologies explains their critical importance in sustainable business models (SBMs) (Mikalef et al., 2017), it remains unclear how organisations can embrace smart ...technologies to create and/or improve their sustainable business models. The purpose of this paper is to unravel and address the challenges of smart technologies to build and maintain a sustainable business model for organisations.Design/methodology/approachThe research develops an empirical analysis through a case study approach. We have investigated the case of ENAV – an Italian air navigation service provider – and how this firm uses smart technologies in the creation of its successful SBM. After constructing a basic theory, the authors moved to evidence collection. The data analysis has adopted a qualitative approach based on a thematic analysis of the transcripts and related documents.FindingsThe findings from the case study support the idea that the business value and the strategic relevance of smart technologies still remain largely underestimated in SBM adoption (Mikalef et al., 2017). Case study findings suggest that until today smart technologies have played a minimal role in SBM adoption. However, the smart technologies show the potential to inform the SBM adoption process by contributing to corporate communication for external stakeholders and to the main dimensions of SBMs such as safety and security or the respect for social and environmental criteria in the supply chain.Practical implicationsThis study seeks to support organisations and their directors to build and improve sustainable business models through smart technologies to maintain their competitive advantages. Specifically, our findings suggest that smart technologies can help organisations bridge the design–implementation gap of sustainable business models.Originality/valueThis research advances our understanding of the role of smart technologies by explaining how they can enhance sustainable business model adoption. Indeed, we offer a comprehensive view of the integration of insights from three different but related literature streams such as sustainability strategies, smart technologies and change management studies.
Purpose The purpose of this paper is to investigate the relationship between ownership concentration and human capital (HC) disclosure released via LinkedIn. Design/methodology/approach This study ...uses a quantitative methodology. The sample is composed of 150 European companies. Content analysis was used to examine HC disclosure via LinkedIn. Regression analysis was used to test the hypothesis. Findings The results indicate that ownership concentration negatively influences HC disclosure via LinkedIn, confirming that closely held firms have little motivation to voluntarily release information. Research limitations/implications The main limitation of this study relates to the sample size. Furthermore, this study investigates only the quantity of HC disclosure; it does not consider the quality of this information. Practical implications The typical ownership structure of European firms generates a force that opposes the growing pressure for internationalization and global transparency. This important issue needs to be considered in investor decisions, HC management and reporting and in setting accounting standards. Moreover, the study points out that, despite the potential opportunities provided by LinkedIn to build and enforce relationships with their stakeholders, companies mainly use LinkedIn for recruitment purposes. Originality/value This study contributes to the literature on HC disclosure because it is, to the best of the authors’ knowledge, the first study that exclusively examines HC disclosure by European companies via LinkedIn and because it develops a disclosure index that includes items concerning the stock of knowledge and capabilities of employees in addition to the practices in human resource management.
•Artificial intelligence generates benefits but implies risks and ethical challenge.•Companies voluntarily disclose artificial intelligence initiatives in reports.•Integrated framework developed for ...artificial intelligence disclosure practices.•Investigated artificial intelligence activities and ethic of European companies.•Provided a taxonomy and a definition for artificial intelligence disclosure.
This study explores the information regarding Artificial Intelligence (AI) included by European listed companies in their annual and/or sustainability reports. The study mainly focuses on (1) the development and use of AI systems/projects reported by companies, (2) the extent to which companies disclose ethical principles or guidelines regarding AI and (3) the factors explaining these practices.
The study analyses the reports of 200 companies listed in the major indexes of Germany, Sweden, Finland, France, Spain, and Italy, both from qualitative and quantitative perspectives. All reports are analysed, using content analysis methodology, to identify expressions such as ‘artificial intelligence’, ‘machine learning’, ‘deep learning’, and ‘big data’, and then classified accordingly. The study’s findings suggest a growing interest in the above-mentioned technologies, although 41.5% of companies do not report any activity in the field of AI. The adoption of ethical approaches to AI is at a very preliminary stage, and<5% of companies report on that issue. The quantitative analysis shows that larger companies, companies in the Technology and Telecommunications industries, and companies based in Southern countries are more likely to disclose information on AI activity. The majority of companies that develop ethical principles are listed in the Northern region and belong to the Technology and Telecommunications industries.
The study provides evidence of AI disclosure, a type of non-financial disclosure that has not been explored yet in the literature. Unlike existing studies, we propose a first definition of the topic and a taxonomy that can be used in further research on AI disclosure and can contribute to the development of KPIs in the field. Furthermore, this study provides a theoretical framework integrating some traditional theories, such as Voluntary disclosure theory, Signalling theory, and Legitimacy theory, specifically drawn to interpret AI disclosure practices, which can help with a further in-depth exploration of AI disclosure combining concurrent perspectives. The study’s results may serve as a starting point for researchers and companies interested in the topic.
PurposeThe purpose of this study is to map the conceptual structure of the body of knowledge linking digital technologies and auditing, with the aim of contributing to a better understanding of this ...research stream.Design/methodology/approachThis research develops a bibliometric analysis of 256 articles following two steps. The analysis of descriptive performance indicators identifies the main traits of the community of scholars debating audit and technology in terms of publications, productive countries and authors, as well as the publication’s impact of the target journals concerning specific fields, number of citations per country and most cited articles in the data set. To analyse the conceptual structure of the data set, the study performs a co-word analysis adopting social network analysis tools.FindingsThe results highlight a growing academic interest in the research topic, especially in the past few years. The bibliometric analysis reveals three main topics concerning the use and application of technology in the audit profession: the adoption of continuous auditing and continuous monitoring in the auditing profession; the use of software tools in the audit profession; the connections between information systems and audit.Originality/valueThis paper contributes to the field by providing an examination of the current state of the art of research on the use and application of technology in the audit profession as well as identifying the current gaps in the literature and, most importantly, propose a research agenda for the field.
This study analyzes the factors associated with the implementation of environmental risk indicators (ERIs) among organizations. According to studies that show the relevance of management accounting ...tools for managing risk, we measure the level of ERI implementation across organizations by analyzing the presence of environmental performance indicators in corporate social responsibility reports and on corporate web sites. The analysis is based on data gathered from 72 Italian listed manufacturing companies for the year 2015. The empirical findings suggest that ERI implementation is positively driven primarily by the following variables: the presence of a chief risk officer, the level of environmental risk score, and firm complexity. In contrast, the number of independent directors on the board does not affect ERI implementation.
Sustainability strategies have become a key element in various firms. Although many studies have discussed the sustainability adoption process, a gap exists between studies with pure deductive ...theorizing and those that focus on empirical practices by comparing the main theoretical models with empirical evidence. Additionally, there has been little research on the sustainability process for public service organizations such as waste collection firms. This paper focuses on how sustainability strategies are developed in waste collection firms. Specifically, we analyse an extreme case, the waste collection firm of the municipality of Naples (WCFMN). This company is a public utility firm owned by the municipality of Naples. Analysing a distinct case provides the opportunity to gain insights and explore how firms develop an overall sustainability strategy, from its motivations to its effects. Our findings support legitimacy theory while providing food for thought about the relation between legitimacy theory and utility maximization theory. Legitimacy theory explains the sustainability adoption process of the WCFMN, whereas utility maximization theory should inform future strategies. Thus, we enrich the ongoing debate about the connections between sustainability drivers, strategies, actions and performance. These findings will help executives and managers of public service organizations to identify and exploit the most effective means of managing the adoption of corporate social responsibility.
•The study analyses the sustainability strategy adoption process, from drivers to performance.•The case study analysis supports and extends the Legitimacy Theory.•Waste collection firms should pay special attention to sustainability practices.•Garbage crises could paradoxically provide opportunities to improve corporate sustainability.•Findings suggest effective ways of coping with corporate sustainability.
Abstract
This study analyzes the factors associated with the implementation of environmental risk indicators (ERIs) among organizations. According to studies that show the relevance of management ...accounting tools for managing risk, we measure the level of ERI implementation across organizations by analyzing the presence of environmental performance indicators in corporate social responsibility reports and on corporate web sites. The analysis is based on data gathered from 72 Italian listed manufacturing companies for the year 2015. The empirical findings suggest that ERI implementation is positively driven primarily by the following variables: the presence of a chief risk officer, the level of environmental risk score, and firm complexity. In contrast, the number of independent directors on the board does not affect ERI implementation.
PDF
