The Interactive Effect of Ego Depletion and Trait Skepticism on Auditor Performance

• In Event: Auditor Incentives and Ego Depletion

Abstract

Auditors continually face triggers of ego depletion, such as resisting temptations, making choices, and engaging in cognitively complex tasks. Auditors also face pressures for heightened levels of professional skepticism. In this study, we theorize and test how depletion and trait skepticism interact to influence auditor performance. We posit that because of their questioning mind and critical assessment of evidence, individuals with higher trait skepticism use relatively more cognitive resources during auditing tasks, thereby enhancing their susceptibility to the negative effects of depletion. In an experiment, we manipulate depletion (higher and lower) between participants, and we measure participants’ trait skepticism. We find that performance in an auditing task of individuals with the highest trait skepticism declines markedly when they experience depletion, such that it falls below that of participants with relatively lower trait skepticism. Interestingly, we find that audit effectiveness is compromised rather than audit efficiency. Our study identifies a potential cost of enhanced levels of skepticism when auditors are depleted, which we anticipate is frequent.

Authors

• Tracie Majors, University of Illinois-Urbana-Champaign

• Lori B Shefchik, Indiana University

• Adam Vitalis, Georgia Institute of Technology