The Influences of Client Identification and Professional Commitment on Skeptical Judgment and Action

• In Event: Professional Skepticism

Abstract

The effectiveness of professional skepticism is of major concern in the auditing profession. Factors influencing professional skepticism are of particular interest, and the current study assesses two such factors. Further, despite the importance of taking action in demonstrating skepticism, little research has investigated under what circumstances auditors may be more or less likely to follow through on skeptical judgments. This study utilizes an experimental setting to examine the effects of client identification on auditor skeptical judgment, the connection between skeptical judgment and skeptical action, and the possible influence of professional commitment on these relationships. We predict and find that higher client identification leads to reduced skeptical judgment. We also predict and find that skeptical judgment does not always lead to skeptical action. Despite our expectation, we find no evidence that professional commitment can reduce the negative effects of client identification on skeptical judgment, but it does improve the link between skeptical judgment and action. Our findings have important considerations for auditing research and practice.

Authors

• Marc Ortegren, Southern Illinois University - Carbondale

• Tom Downen, Southern Illinois University - Carbondale

• Sarah Yeonjeung Kim, University of New South Wales