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Publications (10 of 11) Show all publications
Fotoh, L. E. (2025). Digital inventory audits: an alternative approach to physical observation in audit evidence gathering. Journal of Accounting Literature, 47(5), 211-248
Open this publication in new window or tab >>Digital inventory audits: an alternative approach to physical observation in audit evidence gathering
2025 (English)In: Journal of Accounting Literature, ISSN 0737-4607, Vol. 47, no 5, p. 211-248Article in journal (Refereed) Published
Abstract [en]

Purpose– This study examines whether digital streaming and observation technologies can serve as analternative approach for collecting inventory audit evidence, the challenges faced in their adoption and thefactors contributing to their non-adoption.Design/methodology/approach– This study adopts a two-stage, mixed-method approach, beginning with pilotstudy interviews that informed the comprehensive survey with qualitative and quantitative data. Quantitativedata were analyzed using descriptive statistics, t-tests and Pearson’s correlation coefficient, while qualitativedata were analyzed using qualitative content analysis.Findings– Our findings revealed a positive perspective concerning the effectiveness and reliability of thesetechnologies for inventory audits and the efficiency of internal controls within them, despite challenges such asobtaining a holistic view of the warehouse, observing obsolescence, ensuring inventory completeness andgeneral reliability concerns. Additionally, preferences for physical inventory audits and skepticism about thesetechnologies’ potential to enhance audit quality were identified as factors contributing to their non-adoption.Research limitations/implications– These findings have important implications for cost-conscious firmsbecause they reveal that carefully adopting intermediate technologies can enhance the audit process.Our findings are relevant to audit regulators and firms interested in determining whether such technologiesenhance audit efficiency and quality. This study highlights the need for updated auditing standards and directivesand technologies that meet auditing requirements.Originality/value– This study contributes to the literature by uncovering whether less advanced technologiescan be used as an alternative approach to collect audit evidence. Consequently, the finding adds to the growingbody of literature underscoring the potential of technologies, even less sophisticated ones, to enhance theefficiency and effectiveness of audits, despite their challenges. Additionally, it underscores the need for clearregulatory standards, suggests that auditors embrace emerging technologies and acquire relevant skills andoffers insights for technology developers on audit firms’ concerns regarding digital technologies.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2025
Keywords
Inventory audits, Audit evidence, Physical observations, Digital technologies
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-102692 (URN)10.1108/jal-04-2024-0058 (DOI)001395325600001 ()2-s2.0-85214785231 (Scopus ID)
Available from: 2025-01-14 Created: 2025-01-14 Last updated: 2025-02-18Bibliographically approved
Lorentzon, J., Fotoh, L. E. & Mugwira, T. (2024). Remote auditing and its impacts on auditors’ work and work-life balance: auditors’ perceptions and implications. Accounting Research Journal, 37(1)
Open this publication in new window or tab >>Remote auditing and its impacts on auditors’ work and work-life balance: auditors’ perceptions and implications
2024 (English)In: Accounting Research Journal, ISSN 1030-9616, E-ISSN 1839-5465, Vol. 37, no 1Article in journal (Refereed) Published
Abstract [en]

Purpose This paper aims to explore the impacts of remote auditing on auditors’ work and work-life balance. Design/methodology/approach This paper adopted a qualitative online survey approach using open-ended reflections from 98 highly experienced auditors. The survey design aligns with a “Big Q” approach to qualitative data. The reflections were interpreted through the theoretical lens of the social presence theory. Findings Auditors underscore that remote auditing has improved their work-life balance since it offers flexibility, greater autonomy and efficient use of time. However, they believe less social contact due to remote auditing can hurt their work. Research limitations/implications This study aimed to holistically comprehend the concept of work-life balance in a remote auditing setting. Therefore, the study refrained from making comparisons based on demographic information (e.g. gender, experience and type of audit firm). Practical implications The findings highlight the need for adopting flexible work arrangements that prioritise auditors’ well-being. This is critical for making the audit profession attractive and enhancing overall audit quality. Updated regulatory guidance and controls are needed concerning the use of technologies in remote auditing to ensure high-quality audits. Social implications The findings of this study can positively reshape public perception of the audit profession. Firstly, enhanced work-life balance can improve audit quality. Secondly, incorporating emerging technologies in auditing can result in society perceiving auditors as adaptive to innovation and technological advancement that has been touted for their potential for enhancing the efficiency and effectiveness of audit and audit quality, potentially enhancing societal trust in auditing. Originality/value The findings of this study complement the auditing literature that has mainly focused on the traditional work paradigm, requiring in-person presence. The authors identify potential challenges emanating from auditors’ remote work and propose solutions for audit firms to improve work-life balance in a remote work setting.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2024
Keywords
Work-life balance, Remote auditing, Auditors’ work
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-97255 (URN)10.1108/ARJ-06-2023-0158 (DOI)001091280700001 ()2-s2.0-85174971405 (Scopus ID)
Available from: 2023-11-01 Created: 2023-11-01 Last updated: 2024-02-23Bibliographically approved
Fotoh, L. E. & Lorentzon, J. I. (2023). Audit Digitalization and Its Consequences on the Audit Expectation Gap: A Critical Perspective. Accounting Horizons, 37(1), 43-69
Open this publication in new window or tab >>Audit Digitalization and Its Consequences on the Audit Expectation Gap: A Critical Perspective
2023 (English)In: Accounting Horizons, ISSN 0888-7993, E-ISSN 1558-7975, Vol. 37, no 1, p. 43-69Article in journal (Refereed) Published
Abstract [en]

This study examines how a paradigm shift from traditional to digital audits could affect the audit expectation gap. It uncovers possible new areas of the expectation gap and threats and challenges resulting from this paradigm shift. The findings suggest that audit digitalization will result in the audit profession transitioning from the defensive approach of educating users on auditors’ duties to a constructive approach of using digital tools to perform some of the duties that users expect of auditors. Specifically, digital technologies have the potential to enhance internal controls and facilitate fraud prevention and detection, thus narrowing the expectation gap in relation to these critical issues. It may further accelerate the elimination of future challenges and threats and the narrowing of future expectation gaps. The potential benefits of switching to the constructive approach are lower costs for audit firms, enhanced audit quality, and improved client perceptions of auditors. 

Place, publisher, year, edition, pages
American Accounting Association, 2023
Keywords
audit expectation gap, digital technologies, fraud prevention and detection, internal control
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-94387 (URN)10.2308/HORIZONS-2021-027 (DOI)000967599100004 ()2-s2.0-85142256240 (Scopus ID)
Available from: 2023-04-21 Created: 2023-04-21 Last updated: 2025-02-18Bibliographically approved
Fotoh, L. E. & Lorentzon, J. (2023). Critical Realism: A vital philosophical consideration for research on emerging technologies in auditing. In: 02 Accounting Information Systems (including topics about technology in accounting and blockchain) (AIS): . Paper presented at Hawaii Accounting Research Conference (HARC), University of Hawaii, 2023. Honululu
Open this publication in new window or tab >>Critical Realism: A vital philosophical consideration for research on emerging technologies in auditing
2023 (English)In: 02 Accounting Information Systems (including topics about technology in accounting and blockchain) (AIS), Honululu, 2023Conference paper, Published paper (Refereed)
Abstract [en]

The purpose of this study is to explore the potential of critical realism as an important philosophical consideration for research on emerging technologies in auditing. Particularly, this study explores the ontological tenets of critical realism with its epistemological and methodological implications and examines its potential for research on the impact of emerging technologies on auditing. This paper appears to be the first to implements critical realism in studying the impact of emerging technologies on auditing. Our narrow focus in this area mainly results from the trumpeted transformational role of these technologies on auditing and the proliferation of contemporary research in this area touting these technologies for their prospects in enhancing audit efficiency, effectiveness, and audit quality. We conclude that the stratified ontology of critical realism is useful both for research on emerging technologies in auditing, specifically in understanding complexities, and for enhancing professional scepticism. The contribution of this study is multifaceted. Firstly, there is a great potential for research to go beyond the empirical domain in order to get a deeper understanding of different research problems. With a focus on generative mechanisms, critical realism also enables researchers to look beyond their intradisciplinary areas. Secondly, the adoption of critical realism may enhance scepticism (necessary for audit quality) among practitioners as they may sceptically question the benefits of these technologies. The adoption of critical realism can result in new research questions and challenge prior research through the implementation of a plurality of research methods.

Place, publisher, year, edition, pages
Honululu: , 2023
Keywords
Critical realism, emerging technologies, professional scepticism, auditing
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-93711 (URN)
Conference
Hawaii Accounting Research Conference (HARC), University of Hawaii, 2023
Available from: 2023-02-18 Created: 2023-02-18 Last updated: 2023-02-28Bibliographically approved
Fotoh, L. E. & Lorentzon, J. (2022). A practical approach to constructive alignment (1ed.). In: Niklas Jakobsson; Carina Vikström (Ed.), Bidrag från universitetspedagogisk konferens: (pp. 93-108). Karlstad: Karlstads universitet
Open this publication in new window or tab >>A practical approach to constructive alignment
2022 (English)In: Bidrag från universitetspedagogisk konferens / [ed] Niklas Jakobsson; Carina Vikström, Karlstad: Karlstads universitet, 2022, 1, p. 93-108Chapter in book (Refereed)
Abstract [en]

Prior studies on constructive alignment (CA) have focused on highlighting the benefits of CA and its implementation in different settings, with little attention on how to effectively assess or develop intended learning outcomes (ILOs) that align to teaching and learning activities as well as assessment criteria. The present study fills this void by developing a practical framework to enable teachers to assess and develop constructively aligned learning outcomes of teaching, learning, and assessment criteria using the course; International Financial Accounting (FEAD 11). To realise the objective of the study, we developed a framework that incorporates six key steps: assessing the adequacy of current ILOs; modifying current ILOs if needed; adjusting teaching and learning activities to suit the modified ILOs; adjusting the assessment criteria to suit modified ILOs; continuously monitoring the modified ILOs for quality assurance; and identifying and implementing the relevant support tools. The benefits of this framework lie in its potential for enhancing quality learning by ensuring that ILOs are reasonable and constructively aligned to teaching, learning, and assessment criteria.

Place, publisher, year, edition, pages
Karlstad: Karlstads universitet, 2022 Edition: 1
Series
Utveckling av undervisning och examination i högre utbildning: utgiven av Universitetspedagogiska enheten vid Karlstads universitet ; 2022:1
National Category
Educational Sciences
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-94725 (URN)978-91-7867-297-4 (ISBN)978-91-7867-308-7 (ISBN)
Available from: 2023-05-18 Created: 2023-05-18 Last updated: 2025-02-18Bibliographically approved
Fotoh, L. E., Lorentzon, J. & Fossung, M. F. (2021). An empirical investigation of the audit expectation gap: Evidence from Cameroon. Journal of Accounting and Taxation, 13(3), 191-204, Article ID 45D5BDE67682.
Open this publication in new window or tab >>An empirical investigation of the audit expectation gap: Evidence from Cameroon
2021 (English)In: Journal of Accounting and Taxation, ISSN 2141-6664, Vol. 13, no 3, p. 191-204, article id 45D5BDE67682Article in journal (Refereed) Published
Abstract [en]

Although the audit expectation gap has been subject to substantial research over the past two decades, it remains a controversial issue for the audit profession. This study, therefore, examines the existence of an audit expectation gap in Cameroon between auditors and users (accountants, bankers, and investors), assesses the dimensions of the gap, and relates the findings to prior findings on the expectation gap. A survey questionnaire capturing fifteen semantic different belief statements on a five- point Likert scale was filled by respondents (n=365). The questionnaire addressed issues concerning auditors’ duties, and the consistency and usefulness of audits and audited statements of account. The results indicate significant evidence (α = 0.05) of an audit expectation gap concerning auditors’ accountability to prevent as well as detect fraud and to maintain the soundness of internal control systems, and issues related to auditors' objectivity and impartiality. An expectation gap was equally observed regarding auditors’ trustworthiness and whether audited statements of accounts obviously articulated the degree of guarantee and the work performed by auditors. We mainly recommend the establishment of an informative and educational platform aimed at keeping users abreast of auditors’ responsibilities. These findings serve as a critical reference point for policymakers and regulators interested in enhancing audit quality and audit reliability in Cameroon and other developing economies exhibiting similar audit regulatory and socio-economic characteristics as Cameroon.

Place, publisher, year, edition, pages
Academic journals, 2021
Keywords
Auditing, auditors, cameroon, expectation, perception, users
National Category
Economics and Business
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-85968 (URN)10.5897/JAT2021.0485 (DOI)
Available from: 2021-09-16 Created: 2021-09-16 Last updated: 2022-03-31Bibliographically approved
Fotoh, L. E. & Lorentzon, J. (2021). Critical issues of the audit expectation gap in the era of audit digitalisation. In: 02 Accounting Information Systems (Including Topics about Technology in Accounting): . Paper presented at 2021 Hawaii Accounting Research Conference, January 3-5, 2021. Honolulu: University of Hawai'i Press
Open this publication in new window or tab >>Critical issues of the audit expectation gap in the era of audit digitalisation
2021 (English)In: 02 Accounting Information Systems (Including Topics about Technology in Accounting), Honolulu: University of Hawai'i Press, 2021Conference paper, Published paper (Refereed)
Abstract [en]

This study aims to conceptually examine how a paradigm shift from traditional audits to digital audits could impact critical and recurring issues of the expectation gap. The findings indicate that digital platforms such as data analytics systems supported by machine learning can facilitate the identification of anomalies in data which can be investigated manually by auditors. Also, big data can be used in the audit process to interrogate an entire population of journal entries, transactions, and unstructured data, enabling auditors to focus on transactions displaying unusual patterns identified through artificial intelligence. Furthermore, drones could equally facilitate stock counts, compliance, and the attainment of operational objectives. In a nutshell, existing extant literature and commentaries underscore the significance of these digital technologies in enhancing internal controls and facilitating fraud prevention and detection. This study further contributes to the extant literature by projecting new avenues where the expectation gap is likely to emerge due to a paradigm shift from traditional audits to digital audits, enabling the auditing profession to take pre-emptive measures to prevent the exacerbation of an already worsening trust and confidence in the audit profession by financial statement users.

Place, publisher, year, edition, pages
Honolulu: University of Hawai'i Press, 2021
Keywords
Audit Expectation gap, Fraud prevention and detection, Internal control, Digital technologies
National Category
Economics and Business
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-85967 (URN)
Conference
2021 Hawaii Accounting Research Conference, January 3-5, 2021
Available from: 2021-09-16 Created: 2021-09-16 Last updated: 2021-09-23Bibliographically approved
Fotoh, L. E. & Lorentzon, J. (2021). The Impact of Digitalization on Future Audits. Journal of Emerging Technologies in Accounting, 18(2), 77-97
Open this publication in new window or tab >>The Impact of Digitalization on Future Audits
2021 (English)In: Journal of Emerging Technologies in Accounting, ISSN 1554-1908, E-ISSN 1558-7940, Vol. 18, no 2, p. 77-97Article in journal (Refereed) Published
Abstract [en]

This study examines the future impact of digitalization on auditing by synthesizing empirical studies, relating them to surveys conducted by accounting bodies, and analyzing these findings in relation to extant literature. Based on the synthesis, this study proposes a transitional framework to enable the audit profession to remain competitive. The results show that digitalization may significantly affect the audit profession in the future. However, the impact is likely to be incremental rather than radical. To remain competitive, the audit profession needs to adopt new metrics, capabilities, skills, and evolve its business models to incorporate digital technologies. The contribution of this study is multifaceted. The propositions and research agenda presented in this study will be beneficial to academics, practitioners, audit regulators, and the general public as they have the potential to form a foundation for addressing future research questions and for the theorization and empirical testing of audit digitalization. [ABSTRACT FROM AUTHOR]

Place, publisher, year, edition, pages
American Accounting Association, 2021
Keywords
Auditing, audit process, digitalisation, digital audit tools
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-88187 (URN)10.2308/JETA-2020-063 (DOI)2-s2.0-85122240599 (Scopus ID)
Available from: 2022-01-25 Created: 2022-01-25 Last updated: 2025-02-18Bibliographically approved
Sebhatu, S. P., Fotoh, L. E., Fossung, M. F. & Lorentzon, J. (2021). The role of multi-stakeholder dialogue in institutionalization Corporate Governance-: The case of Cameroon. In: European Institute for Advanced Studies in Management (Ed.), 18th EIASM Workshop on Corporate Governance (online) - European Institute for Advanced Studies in Management : . Paper presented at 18th EIASM Workshop on Corporate Governance (online) - European Institute for Advanced Studies in Management 18-19 Oct,.
Open this publication in new window or tab >>The role of multi-stakeholder dialogue in institutionalization Corporate Governance-: The case of Cameroon
2021 (English)In: 18th EIASM Workshop on Corporate Governance (online) - European Institute for Advanced Studies in Management  / [ed] European Institute for Advanced Studies in Management, 2021Conference paper, Oral presentation with published abstract (Refereed)
Keywords
Corporate governance, Institutional practices, Transparency; Social Responsibility; and Cameroon
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-89240 (URN)
Conference
18th EIASM Workshop on Corporate Governance (online) - European Institute for Advanced Studies in Management 18-19 Oct,
Available from: 2022-03-27 Created: 2022-03-27 Last updated: 2022-11-22Bibliographically approved
Fossung, M. F., Fotoh, L. E. & Lorentzon, J. (2020). Determinants of audit expectation gap: the case of Cameroon. Accounting Research Journal (4-5), 561-576
Open this publication in new window or tab >>Determinants of audit expectation gap: the case of Cameroon
2020 (English)In: Accounting Research Journal, ISSN 1030-9616, E-ISSN 1839-5465, no 4-5, p. 561-576Article in journal (Refereed) Published
Abstract [en]

Purpose This study aims to identify the determinants of the expectation gap between financial statement users (investors and bankers) and auditors from a developing country perspective with Cameroon as the case study. Design/methodology/approach This study makes use of the survey instrument to identify the determinants of the expectation gap in Cameroon. The research method and research design used for this study are similar to that adopted in Schelluch, Bestet al., Fadzly and Ahmed, Desira and Baldacchino and Dixonet al. Findings The results indicate that audits and audited financial statements and auditors' skills are good predictors of the audit expectation gap (AEG), whereas gender, years of experience and occupation (investors and accountants) do not have any significant influence on the AEG. It follows that the expectation gap is further widened by an increase in the regulation and duties of auditors concerning the reliability and usefulness of audits and audited financial statements and auditors' skills. Research limitations/implications A limitation of this study is the sample size, which is limited in scope, with only 400 potential respondents. In addition, this study adopted a survey method used in countries with different economic views and cultural values from Cameroon. Practical implications This study contributes to current knowledge by identifying the determinants of the expectation gap in Cameroon, thus facilitating the adoption of measures aimed at mitigating this gap such as educating the Cameroonian public on the auditors' duties, especially each time a new audit regulation is adopted. The paper is a critical reference point for future research on the subject in Cameroon. Originality/value This study contributes to the expectation gap discourse by uncovering the determinants of the expectation gap from a developing country perspective of Cameroon with a different economic and cultural outlook.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2020
Keywords
Audit, Cameroon, Expectation gap, Audit reliability, Audit usefulness, Expectation, Auditors' duties, Auditors' skills, Auditing
National Category
Economics and Business
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-79196 (URN)10.1108/ARJ-12-2019-0241 (DOI)000541944000001 ()2-s2.0-85086594153 (Scopus ID)
Available from: 2020-08-05 Created: 2020-08-05 Last updated: 2022-11-22Bibliographically approved
Organisations
Identifiers
ORCID iD: ORCID iD iconorcid.org/0000-0003-3181-7323

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