Client's Perception of the Auditor's Professional Skepticism

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Abstract

This study seeks a deeper understanding of perceptions of auditors’ professional skepticism from the client’s viewpoint. The authors survey CFOs and senior-level internal auditors from large public, private, and nonprofit organizations. The study finds clients value both auditors’ professional skepticism and trust in the auditor-client relationship, though clients rate other auditor characteristics (e.g., integrity, confidentiality, independence) as more important than skepticism. Overall results indicate clients believe auditors exhibit appropriate skepticism even though they perceive differences by auditor rank. Findings also show differences by organization type. Results suggest variation in senior managers’ and partners’ level of professional skepticism. While this finding is a difference in clients’ perceptions and not necessarily actual skepticism, auditors should consider the implications for client interactions. Clients also perceive seniors and staff as less skeptical, which is critical to consider as the profession is demanding increased critical thinking and analytical skills from these levels. This finding is of interest to academics and accreditation boards (such as the AACSB) and further supports arguments that curriculums need to provide students enhanced opportunities to develop skepticism.

Authors

• Jodi Lynn Gissel McDowell, Marquette University

• Michael D Akers, Marquette University