Professional Skepticism, Experience, and Industry Specialization of Auditors: A Predictive Study

• In Event: Auditing II

Abstract

Due to the financial scandals, such as Enron, Tyco, and WorldCom, that negatively impact employees and shareholders, lawmakers and stakeholders started to scrutinize the roles that auditors play in organizations’ financial reporting. Grounded in Hurtt’s professional skepticism framework, the purpose of this quantitative correlational study was to examine the predictive relationship between years of auditor experience, the extent of industry specialization status of the auditor and the variation in level of professional skepticism. The study included collecting survey data from 68 U.S. accountants and auditors. The results of the multiple regression model showed that overall auditors’ years of experience did not statistically significantly explain the variation in the level of professional skepticism. However, an auditor having 11 to 15 years’ experience had a significant negative predictive relationship on their professional skepticism. The multiple regression model also indicated that overall auditors’ industry specialization status did not statistically significantly explain the variation in the level of professional skepticism.

Authors

• Robert Sollfrey, Berkeley College

• Wen-Wen Chien, SUNY College at Old Westbury

• Roger Mayer, SUNY College at Old Westbury

• Chiulien Venezia, Frostburg State University

• Medhanie Mekonnen, Wilbur Wright College of the City Colleges of Chicago