A Tale of Two Mindsets: Are Skeptical Judgment and Skeptical Action Facilitated by Contrasting Mindsets?

• In Event: Auditor JDM I

Abstract

Professional skepticism is an essential element of a healthy audit. In this study, we present a framework in which the two elements that comprise professional skepticism – skeptical judgment and skeptical action – differ in that skeptical judgment involves heeding risks whereas skeptical action involves overcoming risks. This distinction suggests that a mindset that facilitates skeptical judgment may impede skeptical action, and vice versa. To test this proposition, we conduct two studies leveraging two different psychological theories of mindsets and align skeptical judgment and skeptical action with two distinct and contrasting mindsets. Our results are consistent with the notion that skeptical judgment and skeptical action are facilitated by contrasting mindsets, which has important implications for researchers and practitioners designing interventions to improve auditor skepticism.

Authors

• Emily Sokolosky Blum, Texas A&M University

• Richard Hatfield, University of Alabama-Tuscaloosa