Assistant Professor of Accounting Jess Filosa was selected for the Outstanding Auditing Dissertation Award at the American Accounting Association Audit Midyear meeting in January.
Awarded to the most outstanding contribution to auditing knowledge, the criteria for the honor included: Timeliness and importance of the problem(s) addressed, creativity of the research, development of an appropriate theoretical framework, appropriateness of the research method and analysis, potential for publication in a scholarly journal, and potential for the results to have an impact on the practice of auditing.
For Filosa, the recognition spotlighted years of work on the issue of companies relying on outside firms to handle important tasks. Her dissertation used machine-learning tools to read corporate filings with the U.S. Securities and Exchange Commission. The goal was to identify which companies outsource work, like payroll or data services, to third-party providers, and what it meant for audits and cybersecurity.
The idea came from her own career. Before pursuing her PhD, Filosa worked at Ernst & Young, where she audited outside service providers. She saw how outsourcing can save time and money, but also open the door to new risks.
Her findings showed companies that depend heavily on third parties face greater exposure to cyber problems. Sharing sensitive information with more organizations can increase the chances of a data breach.