The integration of artificial intelligence (AI) and big data analytics has revolutionized audit practices, offering unprecedented advancements in efficiency, transparency, and sustainability. This study critically examines the role of AI-powered auditing in risk detection, anomaly identification, and the development of sustainable audit frameworks. Through an extensive literature review, the adoption of machine learning (ML), natural language processing (NLP), and continuous auditing methodologies is explored, highlighting their impact on audit quality and assurance. It is demonstrated that AI-driven auditing significantly enhances error detection and risk assessment while expediting audit procedures and improving overall accuracy. However, critical challenges remain, including data security risks, algorithmic opacity, and ethical concerns related to decision-making autonomy. Addressing these issues necessitates the establishment of robust governance mechanisms, increased algorithmic transparency, and the implementation of continuous professional training programs to ensure auditors' proficiency in AI-based systems. Furthermore, AI-driven automation enables real-time monitoring and predictive analytics, fostering a proactive approach to auditing that mitigates financial and operational risks. By leveraging AI and data-driven methodologies, audit frameworks can be rendered more adaptive, resilient, and aligned with the evolving digital economy. These findings underscore the necessity for organizations to integrate AI-driven auditing as a strategic imperative while ensuring regulatory compliance and ethical oversight.
This study investigates the relationship between three prominent global stock market indices, Standard & Poor's 500 (S&P 500), Cotation Assistée en Continu 40 (CAC 40), and Nikkei 225 and the Gross Domestic Product (GDP) of the United States, France, and Japan, respectively, over the period from 2014 to 2023. This research uses empirical analysis where the correlation and regression analysis of these three investment market indices and the GDP of those three nations is done. Based on the results of this research, we can say that the S&P 500 index has a significant impact, explaining approximately 80% of the variation in the GDP of the United States, while the other two indices, Nikkei 225 and CAC 40 have shown a positive statistical relationship with the GDP of Japan and France, accounting for 42% and 51% of GDP variance, respectively. This research also examines some of the roles of factors, such as the power of financial markets as economic indicators, while acknowledging the role of other macroeconomic indicators, including unemployment and inflation. Adjustments for inflation and currency ensure consistency across datasets. These results can be used to create strategies that develop stability and economic growth, improving risk management and the development of investment strategies. This study also reflects the function of fiscal regulations in eliminating the negative influences of unstable markets on financial performance. It is recommended that future researchers use other macroeconomic indicators such as unemployment rates, inflation and research in other countries to obtain a more detailed picture about aspects which can impact economic growth.
South Africa has been severely impacted by several high-profile corporate scandals, with significant financial manipulation involving both the content of financial statements and the tone set by top executives. Notably, CEOs such as Markus Jooste from Steinhoff have been accused of misleading investors through both earnings management and the use of an authoritative management tone. This study investigates the market's reaction to the interactive effect of top management tone and earnings management, employing a short-window event study methodology. The tones of two distinct management styles—autocratic and pragmatic—are examined by analysing CEO statements using the DICTION textual analysis software. The sample comprises 944 firm-year observations spanning from 2011 to 2018. The results indicate that the market did not respond to earnings management in isolation. However, a significant negative market reaction was observed when earnings management occurred in conjunction with an autocratic tone. This suggests that South African investors are particularly attuned to multiple signals of potential fraud and will adjust their valuations accordingly. The findings underline the importance of considering not only financial disclosures but also the behavioral cues given by top management in assessing firm performance and risk. Investors, regulators, and analysts must therefore remain vigilant to the combined risks posed by earnings manipulation and the tone of management communications. The study contributes to the limited literature on the stock market's response to the interplay of earnings management and management tone, particularly in the context of South Africa, and is the first to explore the combined effects of these two forms of manipulation.
This study investigates the industry-wide and regional spillover effects of penalties for noncompliance with information disclosure regulations, focusing on publicly listed firms in China. The analysis is based on panel data from Chinese listed companies, revealing that penalties imposed by the China Securities Regulatory Commission (CSRC) on noncompliant firms lead to significant improvements in the quality of information disclosure by other firms in the same industry or geographical region that were not subject to penalties. These spillover effects are found to be contingent on factors such as the competitive dynamics within the industry and the level of regional economic development. Furthermore, the results indicate that the impact of penalties on neighbouring firms is amplified when the publication cycle for penalty announcements is shorter, though the effect diminishes over time as the information becomes less salient. These findings contribute to the understanding of regulatory enforcement mechanisms and their broader influence on corporate transparency, highlighting the role of both industry and regional contexts in shaping compliance behaviour.
Corporate governance remains a fundamental issue for stakeholders in the oversight of organisations, particularly within the context of public sector auditing. Effective governance, coupled with robust auditing practices, is essential for ensuring transparency and accountability in governmental operations. However, in many African nations, corporate governance frameworks have been either inadequately implemented or have failed to achieve their intended outcomes. This study explores the challenges faced by auditees in relation to corporate governance and their subsequent impact on the efficacy of public sector auditing across Africa. Employing a phenomenological research approach, the study utilised an exploratory sequential qualitative design to gather insights from focus group discussions. A total of 33 key affinities and 153 sub-affinities, encompassing critical corporate governance issues, were identified by three focus groups from selected Supreme Audit Institutions (SAIs) in Africa. These identified affinities included audit execution and recommendations, audit acceptance, political interference, ineffective audit committees, inadequate collaboration and communication, and weaknesses in legislative oversight. Among the key themes emerging from the analysis, the auditee corporate governance policy framework was highlighted as a significant factor influencing auditing outcomes. The findings provide a detailed examination of the unique factors affecting the effectiveness of public sector audits in promoting accountability and transparency. The study proposes a comprehensive policy framework based on a resource-based theoretical perspective, designed to enhance the impact of public sector auditing in African nations. This framework is intended to guide executive governments, legislative bodies, SAIs, citizens, and other stakeholders towards improving governance and securing better public sector outcomes. The empirical evidence provided herein offers valuable insights into the complex interplay between corporate governance and auditing effectiveness, contributing to the ongoing discourse on accountability and transparency in the African public sector.
This study investigates the relationship between capital structure and financial performance at Robin Corporation Ltd, a leading beverage manufacturer in Zimbabwe. A quantitative research methodology was employed, with data collected from 31 employees through structured questionnaires. The study focuses on external and internal financing sources—debt, equity, retained earnings, and reserves—and their impact on the company’s financial outcomes. The analysis reveals a positive correlation between capital structure and financial performance, suggesting that both debt and equity financing play significant roles in shaping financial results. However, it was also observed that factors such as managerial efficiency, inflation, and broader economic conditions exert substantial influence on performance. While capital structure is a critical determinant, the results indicate that effective management of these other variables is equally essential for optimizing financial outcomes. The findings underscore the importance of strategic capital management in the Zimbabwean beverage sector, emphasizing that an appropriate balance between external and internal financing is pivotal for enhancing financial performance. The study contributes to the broader understanding of capital structure in emerging markets and provides valuable insights for companies seeking to navigate the complexities of financial decision-making in volatile economic environments.
This study investigates the harmonising potential of complex systems theory in non-financial reporting of sustainable finance practices within Zimbabwean commercial banks. The increasing prominence of sustainable finance in Zimbabwe can be attributed to the adoption of international frameworks such as the United Nations’ 2030 Agenda and the Paris Agreement, which have led to its integration into banks' non-financial reporting. Sustainable finance, however, is recognised as a wicked problem—an issue characterised by its complexity, involving numerous interacting agents, emergent properties, and the need for a holistic approach. Such problems cannot be adequately addressed through conventional financial theories, which are often insufficient to capture their complexity. Despite the existence of various sustainability reporting standards, a unified framework to harmonise non-financial reporting and enable comparability across banks is still lacking. Using content analysis, this research examines annual reports from 17 Zimbabwean commercial banks, analysing 136 reports spanning from 2016 to 2023. The findings suggest that most banks have adopted a weak sustainability approach, guided by complex systems theory, which enables some degree of harmonisation in reporting standards but ultimately compromises long-term sustainability. This weak approach has been found to encourage greenwashing practices, with policies and strategies that, while aligned with sustainability rhetoric, may perpetuate environmental and social harm. The study makes several key contributions: it provides empirical evidence on the current state of sustainable finance reporting in Zimbabwean banks, offers a theoretical framework for harmonising non-financial reporting using complex systems theory, and proposes the adoption of a stronger sustainability-oriented framework to ensure genuine, long-term sustainability outcomes.
The prospectus, as the primary vehicle for issuers to disclose information to the public, plays a crucial role in protecting investors’ rights. Review inquiries serve as an important tool to ensure the quality of the prospectus, as the inquiry and feedback mechanism helps to identify potential risks and enhance the quality of information disclosure. This paper, based on the theory of responsive regulation and the attention-based view, takes companies applying for Initial Public Offering (IPO) on the Science and Technology Innovation Board (STAR) Market and ChiNext Board between 2019 and 2023 as the research samples. Using text analysis methods such as the Latent Dirichlet Allocation (LDA) topic model and dictionary-based methods, this study measures the intensity of review inquiries and the extent of information disclosure. It examines the impact of inquiry topics on the disclosure of corresponding information in the prospectus and explores the moderating effects of company ownership structure, sponsor reputation, and auditor reputation on these relationships. Empirical results indicate that: (1) an increase in the formality of review inquiries enhances the optimization of information disclosure in the prospectus; (2) the focus of review inquiries on specific topics has a significant positive impact on the update of relevant information disclosure in the prospectus; and (3) at the ownership structure level, state-owned enterprises dampen the positive influence of review inquiries on the textual features of the prospectus.
Ghana has enacted various policies and programmes, often with support from international agencies, to strengthen public sector financial management. These efforts aim to mitigate mismanagement and misappropriation of public financial resources, yet many reform policies have yielded suboptimal outcomes. A critical examination of Ghana's financial reform initiatives reveals a notable oversight: none adequately recognize the role of audit committees (ACs) as a governance mechanism, which diverges from international standards and best practices in public sector financial management. This study aims to identify and analyze the determinants influencing the effectiveness of ACs within Ghana’s public institutions. The research was motivated by persistent financial infractions and irregularities documented in the Auditor-General’s annual reports. An Interactive Qualitative Analysis (IQA) approach was employed to facilitate a focus group session, through which data were gathered, analyzed, and interpreted. Key factors, or affinities, impacting AC effectiveness were identified, including AC member characteristics, inter-stakeholder coordination, funding allocation, meeting frequency and attendance, AC independence, internal audit function (IAF) autonomy, institutional management commitment, the nature of the audited institution, regulatory policies governing ACs, political influence, professional competence of internal auditors, and the quality of quality control processes and recommendations. These affinities were validated through participant interpretation and researcher refinement. The study contributes to the body of knowledge on public sector audit governance by addressing a critical gap concerning the role of ACs in Ghana. By establishing an effective governance mechanism, this research seeks to enhance the strategic oversight and accountability of public financial resources in Ghana’s public institutions.
This study examines the development and trends in financial inclusion research between 2004 and 2023, with a focus on the trajectory of publication growth, key contributors (including influential authors, journals, and institutions), and dominant themes within the field. A systematic review and bibliometric analysis were conducted following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework. A total of 1,784 articles were identified from the Scopus database for inclusion. Analytical tools such as VOSviewer and Microsoft Excel were employed to explore publication patterns, citation networks, and thematic concentrations. The findings reveal a marked increase in financial inclusion research, with 2022 recording the highest output, contributing 473 publications. Among scholars, Ozili emerged as a leading author with significant influence in the domain. The Journal of Sustainability (Switzerland) was identified as the most prolific journal, publishing 173 relevant articles, while the University of International Business and Economics in Beijing, China, was found to be the most productive institution. Keyword analysis highlighted recurring themes and revealed underexplored areas, offering promising directions for future research. This comprehensive analysis not only provides insights into the past and current state of financial inclusion scholarship but also identifies gaps that warrant further academic investigation. By offering performance metrics and mapping the evolution of the field, the study serves as a valuable resource for scholars and practitioners seeking to understand emerging research trends and guide future inquiries.
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