Author
Jun Dai
Rutgers, The State University
of New Jersey, Newark
Southwestern University of
Finance and Economics
Miklos A. Vasarhelyi
Rutgers, The State University
of New Jersey, Newark
Jun Dai
Year Title Concept/Theory/Idea
2016 Imagineering Audit 4.0 Audit 4.0 will piggyback on
technology promoted by Industry
4.0, especially the Internet of
Things (IoT), Internet of Service
(IoS), Cyber-Physical Systems
(CPSs), and smart factories, to
collect financial and operational
information, as well as other
audit-related data from an
organization and its associated
parties. It analyzes, models, and
visualizes data in order to
discover patterns, identify
anomalies, and extract other
useful information for the
purpose of providing effective,
efficient, and real-time assurance.
It is typically an overlay of
Industry 4.0 business
management processes and uses
a similar infrastructure, but for
assurance purposes.
2017 Three Essays on Audit Technological innovations and their
Technology: Audit 4.0, utilizations in the auditing
Blockchain, and Audit profession continue growing in this
App decade. Advances in various
technologies, such as data analytics,
data mining, RFID, Internet of
Things, blockchain, audit app,
Description
The paper aimed to imagineer the
effects and usage of the
technologies that encompass
Industry 4.0 upon the audit
process, prior to their
widespread implementation in
business. The paper tried to
foresee the impact of the fourth
industrial revolution on the
auditing profession, imagineers
the use of new schemata
promoted by Industry 4.0 for
audit purposes, and identified
challenges in the transformation
toward the new generation of
auditing: ‘‘Audit 4.0.’’
The dissertation consists of three
essays exploring how emerging
technologies, specifically Audit 4.0,
blockchain, and audit apps, could
be leveraged to improve assurance
quality and promptness and
potentially to change the current
Critical Analysis
The paper presented the topic of
Audit 4.0 clearly, accurately, and
with order and coherence. The
second section provides a
discussion on Audit 4.0 from
the perspectives of definition,
auditing history, and essential
elements. The third section
imagines how auditing schema
could be changed toward the
new generation. The fourth
section identifies new
challenges faced by Audit 4.0.
Discussion of the evolution of
the auditing profession is
provided in the fifth section.
The last section concludes this
paper and identifies several
future research directions.
There were a lot of questions
posed by the author. The paper
basically discussed a bit of the
current scenario and a chunk of
what the future of auditing
would look like in the Industry
4.0. The paper presented a lot
of data as regards the Audit 4.0
and has successfully organized
them and presented them
coherently.
The dissertation is well-
organized in terms of presenting
the three topics. The dissertation
is orderly and with coherence.
The dissertation consists of three
essays that explore the potential
impact of emerging technologies
drones, etc., exert a deep influence
on the life-style of human-beings.
Researchers are devoting efforts in
exploring the use of those
technologies to enable
investigations upon entire
population, to seek new type of
audit evidence from non-financial
data, to effectively visualize audit-
related data in order to facilitate
auditors’ judgment-making, and to
detect anomalies and fraud on a
continuous basis. While some
technologies have been studied in
the auditing domain, a large portion
of them remains under-explored,
including industry 4.0, blockchain,
and audit apps.
audit paradigm. Chapter one
introduced the motivation for this
dissertation and provided an
extended literature review on the
concepts of Industry 4.0,
blockchain, audit apps, and related
issues. The three essays were
included in chapter two, three and
four, respectively. The last chapter
concludes the dissertation, and
discusses limitations and future
research areas.
on audit domain. The study
contributed to the auditing
literature by introducing Audit
4.0, blockchain, and apps to audit
research, analyzing their
potential applications in audit
procedures, and proposing new
paradigms that leverage those
technologies to improve audit
quality. The first essay foresaw
the impact of the fourth industrial
revolution on the auditing
profession, imagineered the use
of new technologies promoted by
Industry 4.0 for audit purposes,
and identifies challenges in the
transformation towards the new
generation of auditing: “Audit
4.0”. The second essay studied
how blockchain technology
could contribute to the
accounting and auditing
profession. The chapter discussed
how blockchain could enable a
real-time, reliable, and
transparent accounting
ecosystem, and how it could
transform current auditing
practices resulting in a more
precise, timely, automatic
assurance system. The third
essay explored the use of apps to
augment existing audit
procedures. The essay first
proposed a framework that
provided guidance on app
development and use. The paper
is exhaustive in terms of data as
regards the three main topics.
Protiviti
Paul de Jong
Partner, Head of Systems &
Process
Assurance, PwC Switzerland
Dr. Christian B. Westermann
Partner, Data Analytics
Leader, PwC Switzerland
René Rausenberger
Partner, Head of Technology-
driven Audit, PwC Switzerland
2016 Internet of Things (IoT) The Internet of Things (IoT) is
evolving rapidly, with a wide array
of “smart” systems, mobile apps,
personal communication devices
and other platforms already
networked together. In an
increasingly digital world, internal
auditors need to be keen observers
of all technological change that
could potentially impact the
business and its risk profile. The
IoT is exactly that type of
disruptive change. Internal auditors
therefore must be prepared to
quickly identify the signs of IoT
change and any related implications
to the business model or strategic
objectives of the organization.
2018 Audit 4.0, Part 1, Most of the repetitive tasks carried
Finance functions and out by the Finance function can be
processes standardised and automated across
systems using robotic process
automation (RPA). This
development has long been
predicted. But it has only become
reality now that data and such a
wide variety of digital tools are
available.
2018 Audit 4.0, Part 2, High- In the wake of digital
Performing Auditors transformation there’s been a huge
explosion in demand for cost-
efficiency, greater security and
transparency, and fact-based
decision-making. This is forcing
companies to realign their financial
function, and revolutionising
auditing – both of which are now
expected to make a better-quality
The paper discussed the emerging
IoT and provided an overview of
IoT opportunities and risks for
businesses, including how the IoT
potentially could help organizations
mitigate risk. More importantly,
it presented a number of questions
that internal auditors should seek to
answer in collaboration with
management and boards of
directors so that the business is
well-positioned to take advantage
of IoT technologies and capabilities
and operate in a future “Internet of
Everything” world.
The article discussed on the
digitization of the finance function
transforming it from a number
cruncher to sparring partner.
The article discussed on the role of
auditors and the need for high-
performing audits due to the wake
of digital transformation that has
forced companies to realign their
financial function.
The paper is well-organized and
properly persuades its audience,
i.e. internal auditors, to take into
consideration the IoT. In the first
part, it defined IoT and presented
compelling examples of how the
use of internet-connected sensors
by businesses and industries
generate insights that create real
value. The second part discussed
the importance of IoT to internal
auditors. It presented a survey
and enumerated the reasons. The
third part discussed the
opportunities while the fourth
part discussed its risks. The last
part discussed the future
challenges of internal auditors
with IoT.
The article is well-organized and
written properly to inform its
audience of the future of the
finance function and the
challenges that auditors will be
facing because of such
digitization.
The article discussed its topics
with accuracy, order, and
coherence. It properly discussed
the timeline of changing
information ecosystems, the
digital audit, the latest digital
technologies, and the
characteristics of auditors in the
future.
and more useful contribution. CFOs
and auditors are morphing from
backward-looking guardians of
quality to data agents.