Impact Case: "Research Valorization through Open-Source Software"

The goal that the researchers of the Statistical Auditing Group at Nyenrode Business University have set is to make the work of auditors easier and more efficient. Thanks to the development of advanced statistical methods and their integration into open-source software, they are paving the way for more transparency in auditing and greater accessibility of statistical methods.

"Up until now, fairly conservative methods have been used within the auditing profession", researcher Koen Derks explains. "Because we also wanted to address longstanding inefficiencies, we began our mission to modernize audit practices back in 2018." The research group uses Bayesian statistics, a form of statistics in which existing information is integrated with new information in a systematic way. This framework helps auditors work more efficiently and transparently. "Our research has been published in leading international and Dutch journals. This has allowed us to establish a robust theoretical basis for applying Bayesian methods in audit practice."

User-friendly

Theory is one thing, but the research really only took off when the research group decided to make Bayesian methods for auditing accessible via open-source software. In collaboration with the developers of the free and open-source software JASP and the statistical auditing steering group of the Limperg Institute, the researchers built a separate audit module ('JASP for Audit') that also integrates traditional methods. "Our approach was to make the module as user-friendly as possible, so that auditors can perform difficult analyses in an easy way. Users also gain insight into the statistical underpinnings and an audit report rolls out explaining what the various numbers mean." The software's growing popularity is evidenced by the fact that the underlying R package (the engine that drives the software) has already been downloaded over 35,000 times.

Widely Accessible

One major advantage of JASP is that it is free. This means that users don't have to purchase an expensive license. This makes the software accessible to organizations and educational institutions of different sizes. For example, the audit module is now used by several accounting firms and government and educational institutions. The platform has also influenced regulatory agencies, leading to discussions about adopting open-source software as a standard for audit practices. “As an auditor, it is your moral obligation to be as transparent as possible. This software contributes to that.”

Education

JASP for Audit has a user-friendly interface that is familiar to auditors and supports their professional growth. Because the module provides insight into the statistical methods used — including their interpretation — the module has also proven useful in teaching auditors and accountancy students. As it is open-source software, the lines of communication between developers and users are short. “We use the feedback we receive in our research and incorporate it into the audit module. As a result, we are in tune with what auditors really need in their daily practice. The other day I taught a course in which a participant mentioned that the firm for which he works also uses JASP for Audit. At times like that, I always realize how good it feels when you can really make a difference as a research group."