This study examined the challenges faced by internal auditors in adopting AI for the internal audit functions of the public universities in Ghana. The study used a qualitative research design that involved semi-structured interviews with six audit professionals from six prominent public universities; it was guided by the Technology-Organization-Environment (TOE) and Diffusion of Innovation (DOI) theory. The study employed NVivo 14 software to analyses data thematically. The findings revealed four critical themes influencing AI adoption: technological readiness, organizational culture, capacity and competency gaps, and regulatory and ethical ambiguities. The most significant obstacles were identified as technological constraints, such as outmoded infrastructure and inadequate data systems. Furthermore, innovation was impeded by bureaucratic leadership structures and inadequate management commitment. The adoption of AI was further restricted by the ambiguities surrounding its ethical and regulatory use, as well as skill deficiencies. The study underscored the need for leadership commitment and governance innovation to realize the full potential of AI in public audit transformation. It contributes to the literature by contextualizing the challenges of AI adoption in the higher education sector of a developing economy, specifically Ghana, to offer theoretical insights into the intersection of digital readiness and institutional culture. For policymakers, it also provides practical recommendations such as targeted capacity building, infrastructure enhancement, and policy reforms to support AI-driven auditing.
The relationship between corporate sustainability performance and firm valuation has attracted considerable scholarly and practical attention; however, empirical evidence remains inconclusive, particularly within environmentally sensitive and carbon-intensive industries. This study examines the association between corporate sustainability performance and firm valuation in the global oil and gas (O&G) sector and further investigates whether external sustainability assurance moderates this relationship. Grounded in Stakeholder Theory and Legitimacy Theory, an empirical analysis was conducted using a sample of 100 publicly listed O&G companies across multiple jurisdictions during the 2022–2023 period. Corporate sustainability performance was measured using Environmental, Social, and Governance (ESG) scores, while firm valuation was employed as the primary indicator of financial outcomes. In addition, the presence of independent third-party sustainability assurance was incorporated as a moderating variable to assess whether externally verified sustainability disclosures enhance the credibility and economic relevance of sustainability initiatives. The findings indicate that corporate sustainability performance is not significantly associated with firm valuation within the O&G industry. Furthermore, no significant moderating effect of external sustainability assurance was identified. These results suggest that sustainability-related activities and disclosures may not yet be perceived by investors as value-enhancing mechanisms in carbon-intensive sectors. It is also possible that stakeholders regard such initiatives as symbolic responses to legitimacy pressures rather than as substantive drivers of long-term economic performance. The findings challenge the widely accepted assumption that superior sustainability performance necessarily translates into improved market valuation and financial benefits. By providing evidence from a sector characterised by substantial environmental exposure, regulatory scrutiny, and stakeholder pressure, this study contributes to the growing literature on the economic consequences of corporate sustainability. The results further underscore the importance of developing industry-specific sustainability frameworks and assurance practices capable of strengthening stakeholder confidence and improving the integration of sustainability considerations into corporate value creation processes.
The relationship between exchange rate volatility and foreign direct investment (FDI) inflows in emerging economies has remained a central issue in international finance, particularly in economies exposed to macroeconomic instability and external shocks. In this study, the impact of real exchange rate volatility (VOLREXR) on FDI inflows in Egypt was examined using quarterly data spanning the period from 2001 to 2024. Exchange rate volatility was first estimated through the Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) model in order to capture asymmetric responses to exchange rate shocks and to generate a more accurate measure of exchange rate uncertainty. Subsequently, the dynamic relationship between exchange rate volatility and FDI was investigated within the Autoregressive Distributed Lag (ARDL) framework, which enabled the estimation of both short-run adjustments and long-run equilibrium effects in the presence of mixed orders of integration. The empirical analysis was supported by unit root testing, bounds cointegration testing, and an error correction specification, while model adequacy and robustness were verified through a comprehensive set of diagnostic and stability tests, including serial correlation, heteroskedasticity, normality, multicollinearity, and structural stability assessments. The results indicate that VOLREXR exerts a statistically significant and negative effect on aggregate FDI inflows in Egypt in both the short run and the long run, suggesting that heightened exchange rate uncertainty weakens investor confidence and discourages capital commitment. Among the control variables, market size, represented by gross domestic product (GDP), was found to exert a positive and statistically significant influence on foreign investment, confirming the importance of domestic economic expansion in attracting international capital. By contrast, inflation and external debt were found to impose adverse effects on investment performance, reflecting the destabilizing consequences of macroeconomic imbalances. Market capitalization, however, was shown to contribute positively to FDI inflows, highlighting the role of financial market development in strengthening investment attractiveness. Overall, the findings underscore the importance of exchange rate stability and coherent macro-financial policy coordination in fostering a predictable investment climate and supporting sustainable long-term capital inflows into the Egyptian economy.
Artificial intelligence is increasingly being adopted across financial institutions to enhance operational efficiency, strengthen risk management, and improve the quality of assurance services. However, empirical evidence regarding its influence on audit quality in developing economies remains limited. This study investigated the impact of artificial intelligence adoption on audit quality within the commercial banking sector of Zimbabwe. A quantitative research design was employed, and primary data were collected through structured questionnaires administered to auditors and managerial personnel working in commercial banks. The findings indicate that the integration of artificial intelligence technologies into audit processes is associated with significant improvements in audit quality. Specifically, the quality and reliability of audit evidence were reported to be enhanced, the likelihood of material misstatements was perceived to be reduced, and greater efficiency in audit execution and decision-making was achieved. Despite these benefits, several barriers to implementation were identified, including inadequate technological infrastructure, limited financial capacity for artificial intelligence investment, and shortages of personnel with specialized artificial intelligence-related competencies. Nevertheless, strong support for the adoption of artificial intelligence-based auditing practices was observed among respondents. The results suggest that artificial intelligence has considerable potential to enhance audit quality by improving the accuracy, consistency, and reliability of audit procedures and evidence evaluation. It is therefore recommended that commercial banks increase investment in artificial intelligence-enabled audit technologies. Furthermore, supportive regulatory frameworks, professional standards, and implementation guidelines should be established by policymakers and financial regulators to facilitate responsible artificial intelligence adoption, mitigate emerging risks, and promote consistency in audit practices across the banking sector. These findings contribute to the growing body of literature on artificial intelligence-driven auditing and provide practical insights for financial institutions operating in developing economies.
Increasing pressure on relevant stakeholders to shoulder environmental responsibility has compelled businesses to minimize their environmental impact through the provision of, say, improved accounting information. For the accounting profession to effectively contribute to this shift, practitioners should demonstrate both awareness and practical application of environmental management accounting (EMA). This study investigated the level of awareness and utilization of EMA among Maltese Certified Public Accountants (CPAs or accountants), while also examining the influence of job experience, environmental training, size of firm, and business sector. A quantitative research approach was adopted and data was collected through a self-administered online questionnaire distributed to Maltese accountants. Descriptive statistics were used to analyze frequencies of response, while the Chi-square and Kruskal-Wallis tests were applied to assess relationships and test hypotheses. Consistent with existing literature, the findings revealed that both EMA awareness and utilization were low to moderate. They also indicated that accountants who had been trained in EMA while occupying entry-level or executive roles in their organizations exhibited a slightly higher EMA awareness than others. On the other hand, those employed within the larger firms, particularly the Big Four, displayed a slightly higher EMA use than others, indicating differences across firm sizes and sectors. Despite the ongoing limitations, the presence of certain awareness and applications highlighted the existence of a real potential for gradual improvement. Over time, the increased EMA awareness and adoption could enhance environmental practices, and, ultimately, support the country’s long-term environmental objectives, thus contributing to progress toward achieving carbon neutrality by 2050.
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