A systematic literature review of financial reporting risks: What’s next?

Abstract

This paper aims to review the main results of auditing research literature examining the risk of financial reporting. Our research analyzes theoretical and empirical studies on the controversial topic of the role of external auditors in the context of the financial crisis, the greater complexity of financial information and COVID-19 to offer solid reflections about the biggest challenges and limitations that require further study. Theoretical and empirical research studies were investigated and then systematized and analyzed by using SciMAT and VOSviewer to guide a literature-based analysis and critique of the relevant literature published about this topic. Our findings reveal that the risk of financial reporting has gained importance after 2008 and, although this topic has been researched extensively in the past, neither theoretical nor empirical research studies have been performed in the last five years, in particular concerning the changes carried out in the new accounting and auditing regulation that implies important changes. No works were found that deal with this subject in a broad, longitudinal manner, as this systematic review does. Another important contribution is the identification of new topics for further research in the post-COVID-19 era and future crises.