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While the three lines model (TLM) provides an organizational structure to execute risk and control duties, research and practice show limitations in the model's implementation. These limitations result in governance issues. Such issues, together with control weaknesses, could be addressed by leveraging properties of distribution, transparency, and immutability of blockchain technology. To this end, in this paper the authors propose a conceptual control framework based on blockchain technology to augment control practice.

The design of the resulting blockchain-based control framework (BBCF) and its prototype, based on the design science research methodology (DSRM), is presented and discussed in terms of the potential impact in the context of the identified problems within the TLM.

One potential outcome of BBCF could be to redefine the scope and boundaries of some of the activities in audit and control practices from a more static to a more dynamic and prospective role. In a larger context of improving governance practices, the BBCF could set the path for a more inclusive and participatory interaction between the different governance actors of an organization.

However, this assumes that blockchain is more widely adopted despite its complexity and rigidity.

BBCF covering both a conceptual model design and a reference implementation provides an innovation in audit and control. BBCF could include all relevant stakeholders who have an interest in corporate governance and control activities, including the regulators.

The contribution intends to serve both as a starting point for discussing the evolution of audit and control practice based on blockchain technology, as well as an initial actionable prototype for experimentation and further development.

Blockchain is expected to impact reporting and auditing processes. Indeed, the increasing use of blockchain could affect the nature and extent of information available to auditors and how audits are performed. This paper aims to investigate how auditors are assessing the relevance of the current auditing standards in light of the emergent use of blockchain technology.

Based on qualitative content analysis, this paper analyzed semi-structured interviews with auditors to understand their shared perception of how the current auditing standards address blockchain’s emergence.

The findings reveal a growing demand for information technology (IT) auditing standards, as well as a mismatch in timing between the quickly changing IT environment and the regulators’ slowness in releasing new standards or updating standards.

The findings reflect the external auditors’ points of view and cannot be generalized to all countries, but future studies should address the development of specific IT-related auditing standards to better fit the fast-evolving technology environment in ways that consider the other stakeholders’ points of view, including those of the standard setters.

The results of this study show that auditors consider the current auditing standards for IT to be too vague, and they need more guidance on both auditing blockchain and using technologies as audit tools.

The original contribution of this study lies in the in-depth understanding it provides of the adequacy of the current auditing standards to audit companies using blockchain, which is an under-researched topic.

This paper aims to investigate management auditing, a thorough examination of an organization and the management in place, through an empirical research to gather data about how management audits are perceived and implemented among Geneva’s (Switzerland) business community. The board of directors is in charge of a corporation’s overall supervision. The internal auditing function works under the aegis of the board to ensure that the directors will properly execute their responsibilities as defined by corporate governance rules. Management auditing could thus be used to improve corporation performance. However, management audits are not commonly used or referred to as a tool to address corporate governance. Findings enable the authors to both explain why management audits are not commonly used or referred to as a tool to address corporate governance and generate related research hypotheses.

In this paper, the authors rely on an ethnographic study aimed at exploring perceptions of management audits in service companies from the Geneva region. This study is based on transcripts from 85 semi-directed interviews, conducted over a three-year period, of professionals with managerial and auditing backgrounds. The economic context during these three years was consistently characterized by the Swiss and international financial crises, ensuring that the findings remain comparable over this time period.

This paper identified three main factors that influence the integration of management audits into corporate practices: the degree of acceptance of the tools and requirements of management audits, the national culture and values embodied in the practice and the degree of corporate governance maturity. This paper presents the findings in the form of hypotheses that can be tested on any adoption of good corporate governance practices – not on management audits alone.

Notwithstanding the limitations due to its nature and extent, this study’s main limitation is its lack of validation of the hypotheses. In further research, the authors intend to use a quantitative survey to validate the research hypotheses and make statistical inferences.

This paper contributes to the literature because it is, to the authors’ knowledge, the first study to empirically examine the significant link between management audits and corporate governance. The findings could be interesting for an international audience because they indicate possible action points that boards of directors can leverage to carry out management audits. The findings also bridge a gap between the literature on management audits and the expanding role of the internal audit function. This study also examines the way companies – in the Swiss context – understand, perceive and may be ready to apply management audits as a good corporate governance practice.