NEW AUDITORS ARE COMING: DISRUPTING THE FIXED MINDSET AND EXPLORING DYNAMIC CHANGES IN AUDITING

Abstract

The field of auditing is changing dramatically. There is a significant skills gap and traditional accounting majors are underprepared to keep up with the dynamic changes in the auditing field. This paper highlights the fixed mindset mentality that overpowers a traditional accounting major when they begin their entry-level careers in auditing and how this mindset needs to be disrupted through faculty innovation, intervention and proactive investment in training and education by firms. We discuss the pressures faced by a traditional accounting major which leads them to have a fixed mindset when they enter the field of public accounting and industry. The paper presents the potential for blockchain, expert systems, and machine learning in transforming the processes of the auditing industry and its importance in new auditors’ understanding of these new technologies.

ACKNOWLEDGMENTS

The authors would like to thank research assistant Nicole Conrad, CPA, Research Assistant, Graduate of Central European University, Hungary, for her efforts towards this publication.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Meghna Singhvi

Dr. Meghna Singhvi is an Associate Professor of Accounting at California State University Dominguez Hills. She has a Masters in business administration (MBA) from Ohio University and a Masters in Accountancy from Northern Kentucky University. She finished her Doctor of philosophy (PhD) in Accountancy from Florida International University in 2011. Dr. Singhvi’s research interests include material weaknesses in internal controls, gender on corporate boards and changes in the auditing industry.

Dr. Ashrafee Hossain is an Associate Professor of Finance at Memorial University of Newfoundland. He has completed a Bachelor of science in information technology (2003) and a Master of business administration (MBA) in finance (2005) from Virginia Tech. He finished a Doctor of philosophy (PhD) in finance from Concordia University in 2013. Dr. Hossain’s research interests include corporate finance, corporate governance, financial regulations, mergers and acquisitions, corporate social responsibility, and sustainability.

Dr. Jennifer Brodmann is an Assistant Professor of Finance at California State University Dominguez Hills. She has her Doctor of philosophy (PhD) in Financial Economics, Master of science (MS) in Financial Economics, and Master of business administration (MBA) from the University of New Orleans (UNO). Her main research interests are in corporate finance and entrepreneurial finance, where she explores topics related to corporate governance, trends in the finance industry, and access to capital.