An Empirical Evaluation of Future Auditors in the U.S. and India Using the Trifurcated Dimensions of Professional Skepticism

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Abstract

Affiliated offshore entities in India have become a popular mechanism for accounting firms in the U.S. Understanding the factors that impact the audit quality of work performed by affiliated offshore entities has become an imperative for U.S. accounting firms. We identify three distinct dimensions of trait professional skepticism embedded the Hurtt (2010) Professional Skepticism Scale and use these trifurcated dimensions to evaluate the role that culture has on the trait professional skepticism mindset of future auditors in India and the U.S. Our research finds that there are no significant differences between U.S. and Indian auditing students on the evidential “trust but verify” dimension of trait professional skepticism, however U.S. students score higher on the behavioral “presumptive doubt” and self-reliance dimensions. We also perform qualitative research that finds that the dominant audit culture may also significantly impact the presumptive doubt and self-reliance attitudes of audit team members from affiliated offshore entities. Our findings have both theoretical and practical implications for researchers and practitioners looking to evaluate the factors that impact audit quality for firms using affiliated offshore entities in India.

Authors

• Gabriel Dickey, University of Northern Iowa

• R. Greg Bell, University of Dallas

• Sri Beldona, University of Dallas