Does Professional Skepticism Lead to Presumptive Doubt in an Audit Task?

• In Event: Breakfast and Research Forum
  In Roundtable Session: Table 17: Professional Skepticism

Abstract

This study surveyed trait skepticism (ex ante disposition to believe) of students, auditors, and accountants working for public companies. The skepticism scores were correlated with reaction to non-error explanations of profit shifts to see if the skepticism scores predicted skeptical thoughts. Professional skepticism scores as measured by Hurtt’s (2010) instrument did not differ among students, auditors, and accountants but two characteristics of skeptics (willingness to suspend judgment and having a questioning mind) were lower for those with audit experience. Skepticism scores did not predict skeptical reactions in a free-response neutral task (no red flags or risk conditions present). Those reacting most skeptically to client explanations were more experienced as auditors, more self-confident, or had better interpersonal understanding. The study gives insight about traits that lead to desirably skeptical reactions (or a greater likelihood in voicing those reactions) to client explanations when the situation has not yet produced “red flags.”

Author

• Carol Springer Sargent, Middle Georgia State College