Caren Schelleman

Assistant Professor

Dr. Caren Schelleman is an Assistant Professor of Accounting and Information Management at Maastricht University’s School of Business and Economics. She earned her MA in Economics and Business Administration (1997) and PhD in Auditing (2003) from Maastricht University, and received part of her research training at the Fisher School of Accounting, University of Florida.Her research focuses on auditing, assurance services, internal control, and corporate governance, both from economic and behavioral perspectives. She has published in leading journals such as The Accounting Review, Auditing: A Journal of Practice & Theory, European Accounting Review, and Accounting and Business Research.Dr. Schelleman is co-author of the book Accounting Information Systems and Internal Control (Wiley) and regularly presents her work at international conferences, including the European Accounting Association, American Accounting Association, and the International Symposium on Audit Research. She also teaches courses on internal control and auditing at undergraduate and graduate levels and has served as a visiting professor at the University of Auckland, New Zealand.

Internal Controls
The importance of internal control over financial reporting (ICOFR) has increased over the past few decades. All over the world, governments are reinforcing regulations related to internal controls, forcing firms as well as their auditors to direct more attention to the quality of internal controls in place. Along with the growing importance of ICOFR, researchers have conducted studies examining different aspects relating to internal controls. To provide a broad overview of the current understanding of internal control systems, this literature review provides a summary and synthesis of studies conducted.  
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Internal controls
The auditor’s reliance on client internal controls has always been a contentious issue. If clients have high quality internal controls, auditors should be able to rely on these controls, making the audit more efficient. However, what constitutes a “good” internal control system is unclear, which makes it difficult for the auditor to determine how to integrate a client’s internal control system into the auditing procedures. Research suggests that the quality of a client’s internal control system very much depends on the context of the firm, and no clear guidelines exist. This is worrisome, given that a high proportion of audit clients shows significant shortcomings in their internal control over financial reporting. Clear evaluation criteria are lacking and necessary, but the rise of data analytics is likely to partially solve this issue. Computer algorithms facilitate large-scale tests by the auditor and may flag suspicious transactions, reducing the need for the auditor to depend on their clients’ internal control systems.
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Audit Committee Involvement and Audit Quality
The audit committee is a key feature of contemporary corporate governance. Despite ever-tightening regulation concerning its independence and expertise, it still is unclear why some audit committees underperform, and how this impacts the effectiveness of the external audit. We argue that, next to having the appropriate skills, audit committee involvement in the audit process is crucial for its effectiveness. Communication, trust, and support between the audit committee and the external auditor, as well as the power and leadership of the audit committee are key features which may affect how the audit committee deals with disagreements between management and the auditor, and to what extent it will critically challenge both parties. However, these “soft” dimensions are understudied, and more insight is valuable for practitioners, academics, as well as regulators on what triggers audit committee involvement, and how this feeds back into the audit process. We aim to demonstrate that an active, involved audit committee is able to create synergies with the external auditor, which can streamline the audit process and enhance audit quality.  
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Audit Committees and Audit Quality
The purpose of this literature review is to provide an overview of the academic literature on the relationship between audit committees (ACs) and audit quality (AQ). The starting point for our review is the most recent comprehensive overview of literature on corporate governance research in accounting and auditing by Carcello et al. (2011a). We start from their findings and conclusions, and add our review of studies on the relationship between ACs and AQ for the most current period, starting with 2011. In doing so, we draw from the IAASB (2014) conceptual framework on AQ that presents the key input, process and output factors that contribute to AQ.  
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The drivers and impact of audit committee involvement on audit quality
The audit committee is an important component of current corporate governance. Despite increasingly strict regulations regarding independence and expertise, it remains unclear why some audit committees underperform and how this affects the effectiveness of the external audit. We argue that, in addition to having the right skills, the audit committee’s engagement in the audit process is crucial for audit effectiveness. Communication, trust, support, power, and leadership are key characteristics that can influence how the audit committee handles disagreements between management and the auditor, and to what extent the committee will critically challenge both parties. These “soft” dimensions have not yet been sufficiently studied. More insight is needed for practitioners, academics, and regulators on how audit committee engagement can be encouraged and how this engagement impacts the audit process. We aim to demonstrate that an active and engaged audit committee can create synergy with the external auditor, where both parties trust and support each other. This synergy can elevate the audit process and audit quality to a higher level.
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Auditor reliance on internal controls: challenges, insights, and the future of data analytics
Auditors have long grappled with how much they can trust a client’s internal control system. Strong internal controls can make audits more efficient, but what defines “high quality” controls remains unclear and many companies still fall short. Research shows that internal control quality depends heavily on firm-specific factors like size, complexity, governance, and risk profile. While robust controls improve financial reporting, reduce operational risk, and even lower audit fees, a significant number of firms continue to exhibit material weaknesses, raising concerns about audit reliability.
For auditors, evaluating internal controls is now a mandatory part of the process under standards like Sarbanes-Oxley Section 404 and ISA 315. Yet, this evaluation is challenging: controls vary widely across organizations, and clear guidelines are lacking. Auditor independence and a deep understanding of the client’s operations are critical, but experience alone doesn’t guarantee better assessments. Looking ahead, technology promises to reshape this landscape. Data analytics and AI can help auditors test entire populations of transactions, flag anomalies, and reduce reliance on client controls. Continuous auditing and machine learning may soon make audits faster, more comprehensive, and less dependent on traditional control systems, though these benefits will mostly apply to large-scale clients. In short, internal controls remain central to audit quality, but their evaluation is complex and context-driven. As technology advances auditors must adapt and balancing traditional judgment with innovative tools to ensure trust and transparency in financial reporting.
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De betrokkenheid van het auditcomité op de auditkwaliteit
Het auditcomité is een belangrijk onderdeel van de huidige corporate governance. Ondanks de steeds strenger wordende regelgeving op het gebied van onafhankelijkheid en expertise, is het nog steeds onduidelijk waarom sommige auditcomités onderpresteren en hoe dit de effectiviteit van de externe accountantscontrole beïnvloedt. Wij stellen dat, naast het hebben van de juiste vaardigheden, de betrokkenheid van het auditcomité bij het auditproces cruciaal is voor de effectiviteit van de audit. Communicatie, vertrouwen, ondersteuning, macht en leiderschap zijn belangrijke kenmerken die van invloed kunnen zijn op de manier waarop het auditcomité omgaat met meningsverschillen tussen het management en de accountant, en in hoeverre het auditcomité beide partijen kritisch zal uitdagen. Deze ‘zachte’ dimensies zijn nog onvoldoende onderzocht. Er is meer inzicht nodig voor de praktijk, academici en toezichthouders over hoe de betrokkenheid van het auditcomité kan worden gestimuleerd en hoe de betrokkenheid het auditproces beïnvloedt. Wij willen aantonen dat een actief en betrokken auditcomité in staat is om synergie te creëren met de externe accountant, waarbij beide partijen op elkaar vertrouwen en elkaar steunen. Die synergie kan het auditproces en de auditkwaliteit naar een hoger niveau tillen.
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Audit committees and audit quality – a review of the literature
The purpose of this literature review is to provide an overview of the academic literature on the relationship between audit committees (ACs) and audit quality (AQ). The starting point for our review is the most recent comprehensive overview of literature on corporate governance research in accounting and auditing by Carcello et al. (2011a). We start from their findings and conclusions, and add our review of studies on the relationship between ACs and AQ for the most current period, starting with 2011. In doing so, we draw from the IAASB (2014) conceptual framework on AQ that presents the key input, process and output factors that contribute to AQ.
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