Audits and COVID-19: A paradigm shift in the making.

The COVID-19 pandemic has exposed the obsolescence and vulnerability of many existing auditing practices. Whilst some progressive practices have been implemented (i.e., remote audits using rudimentary Information & Communication Technologies), a new paradigm is needed to not only account for the risk of repeated lockdowns, but also to align practices with the level of digitalization, automation, and use of artificial intelligence in the current business environment. In this paper, we argue that the adoption of new technologies requires a fundamental rethinking of how auditing services are delivered. We argue that new technological possibilities have implications for five other auditing elements that enable a shift from the old to the new paradigm of auditing, namely actors, processes, spaces, training and skills development, and services. We explain how non-financial audits conducted under the new paradigm are key enablers of a firm's ability to participate and thrive in a competitive international marketplace.

Technology-enhanced Auditing in Voluntary Sustainability Standards: The Impact of COVID-19

The ongoing COVID-19 pandemic has had a significant impact on the certification and auditing services of Voluntary Sustainability Standards (VSS). The traditional approach to auditing—on-site visits—has been significantly curtailed, and it is unclear when, and under what conditions, it might resume in full. The purpose of this paper is to study the initial responses to COVID-19 of leading VSS—a group of 21 standards that are members of ISEAL, a global membership organization for VSS. This is a qualitative study, and data are collected from publicly-available sources (i.e., official announcements, policy amendments, derogations) in order to inductively analyze how individual VSS have adjusted their certification services in response to travel bans and lockdowns. The emphasis of the analysis was understanding the role of technologies in the VSS responses to the COVID-19 crisis. The findings demonstrate significant uptake of remote auditing and information and communications technology (ICT), even though that uptake is constrained by limiting conditions and it is not currently expected by VSS to extend beyond the crisis. Lessons learned from the crisis are discussed, and the potential for remote auditing during this period to encourage the adoption of more advanced technologies (such as artificial intelligence and satellite monitoring) in certification services is explored. A set of research questions to guide future work grounded in the analysis is also provided.