International Journal of Critical Accounting (7 papers in press)

Regular Issues

• An econometric explanation of government expenditure behaviours in Nigeria: the open economy approach  
  by Barine Michael Nwidobie 
  Abstract: This study adopted the exploratory approach to identify the short and long-run determinants of public sector behaviours in Nigeria using the error correction model and the econometric dynamic model. Research results show that total government expenditures, total government capital expenditures and total government recurrent expenditures increased sharply though at a gradual annual rate between 1987 and 2023. The error correction model result show that in the short run, school enrolment, population, market capitalisation, government size, FDI, exports and debt servicing costs have negative relationships with total government capital expenditures; while foreign exchange reserves, RGDP, oil revenues, non-oil revenues, net credit to government, local debt, imports and foreign debts have positive relationships with total government capital expenditures. To improve economic indices, the government should consider existing relationships between the explanatory and dependent variables, and increase in the proportion of government capital expenditures with attendant improvement in future sustaining income flows/economic performance.
  Keywords: capital expenditure; open economy; Peacock-Wiseman hypothesis; recurrent expenditure; Wagner hypothesis.
  DOI: 10.1504/IJCA.2025.10073061
   
  
• Does a venture capitalist influence auditor going concern decisions?  
  by Geraldo Vasquez 
  Abstract: A growing number of firms that go public are financially distressed often for several years of their initial existence, raising concerns about their ability to remain going concerns. Yet many IPOs do not receive going concern opinions (GCOs) from their auditors who are charged with assessing a clients going concern status, including a review of factors that may mitigate the need for a GCO. A key feature of IPOs is that a significant proportion of them are financed by venture capitalists (VCs). Accordingly, this study attempts to determine if a relationship exists between VCs and GCOs. Estimating multivariate logistic regression models, this study finds support that GCOs are assessed less often to financially distressed IPOs with venture capital backing and that the negative association between the presence of a VC and the issuance of a going concern opinion is stronger the greater the involvement of a VC.
  Keywords: going concern opinion; GCO; auditor reporting behaviour; financial relationships; venture capitalists.
  DOI: 10.1504/IJCA.2025.10073700
   
  
• Enhancing audit quality: the critical role of trust in AI adoption among auditors  
  by Arbia Chatmi, Karim Elasri, Jorjia Ronquillo 
  Abstract: This study investigates the factors influencing auditors' adoption of artificial intelligence (AI), with a focus on trust. Using a questionnaire-based methodology, responses from auditors in prominent French firms were analysed to explore motivations and barriers to AI integration. Gender and experience shape perspectives: women emphasise AI's impact on audit quality, while men focus on its technological aspects. Less experienced auditors need training on AI risks, while more experienced auditors benefit from continuous education to enhance results. Young auditors should develop critical awareness of AI limitations, and older auditors should focus on improving AI-generated outcomes. Findings reveal trust as a key factor in AI adoption, driven by concerns over errors, reliability, and confidentiality. Managerial recommendations include tailored training, enhancing AI reliability, and fostering innovation. Establishing trust through transparent communication is essential for integrating AI into auditing, ultimately improving efficiency and audit quality.
  Keywords: auditors; artificial intelligence; AI adoption; trust in AI; gender; experience; auditing practices.
  DOI: 10.1504/IJCA.2025.10071794
   
  
• Instructional strategies to promote critical thinking skills development among accounting undergraduates – a literature review  
  by Sandhiya Roy 
  Abstract: Accounting educators are continuously urged to implement appropriate instructional tools that encourage the development of critical thinking skills among undergraduates. This research contributes to sharing the usefulness of diverse teaching approaches, along with the limitations, to better understand which instructional tools are viewed as beneficial in encouraging accounting students to cultivate critical thinking skills. A systematic review of prior studies was undertaken at the undergraduate level within the accounting discipline. A thematic analysis of the literature revealed five instructional tools, and these include class dialogues, research engagements, field trips, case studies, and educational games. The associated challenges suggest that educators require institutional-level training and support to help them appropriately integrate the tools within their curricula. The study outlined five instructional tools however this is not an indication that the approaches to support undergraduates to hone critical thinking capabilities are restricted to these five tools. The labour market continues to become competitive and complex, and research into exploring innovative instructional tools must continue to better prepare the next generation of graduates, translating into a skilled workforce and reducing the skills gap.
  Keywords: accounting education; critical thinking; class dialogues; research engagements; field trips; case studies; educational games; transferrable skill; active learning; experiential learning; skills gap.
  DOI: 10.1504/IJCA.2025.10071378
   
  
• Evaluating the levels of internal audit effectiveness among commercial and manufacturing state corporations in Kenya  
  by James Odero, David Karungu Wang'ombe, Farida Abdul 
  Abstract: No organisation can refute the benefits of an effective internal audit. Organisations worldwide are making efforts to strengthen their internal auditing functions. These efforts aim to fully realise the benefits associated with effective internal audits. One such effort involves developing a scientifically validated measurement index to evaluate internal audit effectiveness. However, previous studies have demonstrated some shortcomings in this area. Previous researchers have executed existing measurement scales inadequately, failed to identify priority measures linked to internal audit stakeholders, and did not validate them. To address these gaps, we constructed an internal audit effectiveness scale. This study used fuzzy-AHP and principal component analysis (PCA) methods. Internal audit effectiveness is used as the primary measurement target. This study evaluates four dimensions: resources, organisational structures, processes, and organisational relationships. These four dimensions were used to build seven components and thirty indicators. The fuzzy-AHP and PCA methods provided important insights. For instance, among the four dimensions, internal audit processes are the least prioritised.
  Keywords: internal audit effectiveness evaluation index; internal audit effectiveness indicators; fuzzy-analytical hierarchy process; FAHP; principal component analysis; PCA; internal audit levels; Kenya.
  DOI: 10.1504/IJCA.2025.10073640
   
  
• Journey of a woman independent director – a case from India  
  by Lakshmi Murthy, Poornima Tapas 
  Abstract: The study examines the personal narrative and trajectory of women independent directors at board-level positions, focusing on Roma Balwani. Data was collected through a two-hour exploratory interview and a combination of text analysis and content analysis techniques. The research reveals that women with an internal locus of control can achieve sustained career advancement for 25–30 years while maintaining a healthy balance between professional and familial responsibilities. This internal locus of control develops during early life and has lasting effects on women's educational attainment, family dynamics, and professional advancement. This study will enable women leaders to aspire for board positions and learn to balance between career and aspirations. Women can identify support systems, which will facilitate their career aspirations. In turn, it reduces the pipeline-related issues associated with the availability of women directors. This study suggests that mentoring and establishing a support system at the workplace can increase the availability of aspirational women for board positions. Organisations can implement tools like locus of control to identify potential women leaders and groom them for leadership positions.
  Keywords: women board directors; internal locus of control; ILOC; India; career development; challenges; corporate governance.
  DOI: 10.1504/IJCA.2025.10073641
   
  
• LCE auditor's management override-oversight dilemma: a descriptive analysis  
  by Niels Van Nieuw Amerongen 
  Abstract: Many small and medium-sized entities (SMEs) are governed by a dominant owner-manager, implying an increased level of the risk of management override of controls. At the same time, a closely involved owner-manager with day-to-day operations of the entity offers opportunities to the auditor to rely on supervisory controls. Given the absence of a rigorous analysis of this override-oversight dilemma, this article aims to provide a descriptive analysis of relevant parts of the auditing standards and available practical guidance. This offers substance to practicing auditors in the SME audit domain when relying on these controls. The insights of this paper may also be useful for the international standard setter (IAASB) when developing further guidance for less complex entities' audits. This article follows a structured approach of reviewing international standards on auditing, prior literature and practical guidance in the area of owner-manager's supervisory controls. Applying an (owner-manager's supervisory) control reliance approach requires having gained substantial knowledge and experience of the audited entity and more importantly extensive experience with the owner manager, resulting in a low integrity risk assessment. Application of this approach depends on various context-specific characteristics.
  Keywords: supervisory controls; management oversight; management override; less complex entities; LCEs; owner-management's integrity; small and medium-sized entities; SMEs.
  DOI: 10.1504/IJCA.2025.10072807