Knowledge Transfer Influencing Skepticism in Audit Engagement Planning

• In Event: Continental Breakfast - Research and Education Forum
  In Roundtable Session: Table 16: Professional Skepticism 2

Abstract

This study explores how knowledge transfer and expertise, together with position in firm and firm type, influences auditor skepticism in audit engagement planning. An experiment is conducted using experts auditing partners/managers and novices and the results compared to show the differences between how the two groups make decisions in light of knowledge transfer and professional skepticism. Data from the experiment is aggregated and analyzed in a professional skepticism model using multivariate statistical techniques. Results, consistent with Nelson (2009), show that knowledge transfer and expertise have a significant positive influence on auditors’ skepticism in engagement planning. Another finding from the auditor’s model is that trait effects (as captured by firm effects) were not significant in explaining auditors’ judgments. However, in the novice’s model, the only significant finding was that judgment affected decision choice. The general findings of this study emphasize that knowledge transfer and expertise are an essential element of a professional skepticism model and play an important role in audit engagement planning.

Authors

• Waymond Rodgers, University of Texas at El Paso

• Grace Mubako, University of Texas at El Paso

• Laura Hall, University of Texas, El Paso