Examining the Impact of Audit Firms' Use of Skepticism Feedback in Auditor Training

• In Event: Professional skepticism

Abstract

In response to PCAOB concerns about auditors’ professional skepticism, certain international auditing firms use the Hurtt Professional Skepticism Scale (“HPSS”; Hurtt 2010) to help auditors improve their professional skepticism. This practice involves providing feedback on their trait (i.e., inherent or natural) skepticism levels as measured by the HPSS, along with instructions to increase their skepticism if they are low in trait skepticism. To test the efficacy of the firms’ training approach, we conducted an experiment in which 240 auditing students responded to the HPSS and, one week later, examined two simulated accounts receivable confirmation exceptions. We varied whether participants receive HPSS score feedback and/or instructions to increase their skepticism. We find the audit firms' practice of providing score feedback and instructions leads participants to improve their skeptical actions and judgments. However, the HPSS itself does not predict skeptical behavior in our setting, suggesting the feedback may not be accurate. Together, these findings imply the firms’ practice is useful, but may need a more predictive skepticism measure.

Authors

• Aaron Saiewitz, University of Nevada-Las Vegas

• Mary Kate Dodgson, Northeastern University

• Marcus M. Doxey, University of Alabama-Tuscaloosa