Professional Skepticism Research Articles

Ориентиры, ожидания и факторы принятия решения о поступлении в вуз

The article analyzes students’ expectations and professional guidelines, and factors influencing the choice of a specific university for higher education. In the process of searching for a new identity, Russian universities need reliable information about the demands of stakeholders. The article proves that sociological surveys among students, contrary to the growing opinion among experts, can serve as a source of such data. In addition, the results of the study refute the point of view about growing professional skepticism among students, although in this case the dependence on the future specialty is clearly recorded. In the authors’ opinion, great efforts, when making decisions (including government ones), must be directed to the harmonization of all “three missions” of the university, and especially to student science. The article summarizes the results of an empirical sociological study. The research samples were quota, stratified by areas of training, the second sample was stratified by course of study. The volume of the first sample was 580 people aged 18 to 20; the size of the second sample was 964 people aged 19 to 25. As a result of the study, the authors found the following: professional optimism of student youth is sufficiently associated with obtaining higher education; students are not characterized by infantilism and weak professional orientation; students’ awareness and optimism in the field of Russian science is low; students often make decisions about their professional choice independently, but often under the influence of “random” factors; freshmen are more optimistic about their professional future compared to seniors. The study demonstrated the need for regular monitoring of the professional expectations and orientations of students at universities in order to better understand, among other things, their development prospects and their strategic goals.

Professional skepticism of internal auditors and perception of risks in internal controls

Professional skepticism of internal auditors and perception of risks in internal controls

Effect Of Professional Competence And Skepticism On Audit Quality At The Papua Provincial Inspectorate

This study aims to investigate the effect of professional competence and skepticism on audit quality at the Papua Provincial Inspectorate. The research population consists of 32 auditors working in the Papua Provincial Inspectorate Office with a minimum of 2 years of service, auditing experience, and a final education level of S1. Questionnaires were used to collect primary data from the respondents. The data was analyzed using multiple linear regression analysis in SPSS 26. The results indicate that both professional competence and skepticism have a significant positive effect on audit quality, as confirmed by the t-tests. The study contributes to the understanding of factors influencing audit quality and can serve as a reference for future research on the topic. Kata Kunci : competence, professional skepticism, audit quality

The Importance of Professional Skepticism in Detecting Money Laundering: Investigating Officers’ Perspective

The Importance of Professional Skepticism in Detecting Money Laundering: Investigating Officers’ Perspective

Attracting the Next Generation of Accountants: The Joint Impact of Sustainability Emphasis and Social Value Orientation on Accounting Career Perceptions

SUMMARY A consequence of the COVID-19 pandemic is that workers increasingly want work that aligns with their values. Given that Gen Z, the next generation of accountants, is characterized by a focus on ESG issues, we use an experiment to test whether emphasizing sustainability assurance roles attracts individuals to the profession and which types of individuals are most attracted. We find individuals are more interested in becoming accountants when sustainability assurance positions are emphasized, relative to financial positions. We further find individuals with a prosocial (but not proself) social value orientation drive this result due to the greater intrinsic appeal of sustainability jobs to these individuals. We also find some evidence that prosocial individuals exhibit lower professional skepticism than proself individuals, highlighting a potential negative consequence of attracting prosocial individuals to the profession. Our findings illuminate how the accounting profession can attract prosocial individuals and one implication of doing so.

PENGARUH INDEPENDENSI, OBJEKTIVITAS, PENGALAMAN KERJA, KOMPETENSI, INTEGRITAS DAN SKEPTISME PROFESIONALTERHADAP KUALITAS AUDIT (STUDI DI INSPEKTORAT PROVINSI BENGKULU)

This study aims to find empirical evidence regarding the effect of independence, objectivity, work experience, competence, integrity and professional skepticism on audit quality at the Bengkulu Provincial Inspectorate. The type of research used in this research is quantitative research. The type of data used is primary data in the form of values or scores for the answers given by respondents to the questions in the questionnaire. The sampling technique used is the saturated sample/census method.
 Based on sampling through the saturated sample/census method, 46 samples of Bengkulu Province Inspectorate auditors were obtained. The data was processed through the multiple linear regression statistical test method using SPSS software version 21. The results of the study found that competence had a positive effect on audit quality. Meanwhile, independence, objectivity, work experience integrity and professional skepticism have no effect on audit quality.

Audit Experience, Independence, and Professional Skepticism Against Fraud Detection: Time Pressure as a Moderating Factor

The extraordinary effect of the Covid-19 outbreak, which pushes society and government to deal with a new normal in the face of situation uncertainty, raises the risk of fraud. The goal of this study is to predict and explain the effect of audit expertise, independence, and professional skepticism on fraud detection, with time pressure acting as a moderating variable. This inquiry employed the explanatory approach. The population comprises of BPK RI (The Audit Board of the Republic of Indonesia) and BPKP (Finance and Development Supervisory Agency) auditors from South Kalimantan Province, and the samples include 85 respondents. Surveys are used to collect data. The data suggest that audit knowledge and professional skepticism have a positive influence on fraud detection; independence has no effect on fraud detection; and time constraint has no effect on fraud detection.

Behavioral aspects of accounting and auditing

Over the past 50 years, in the research of foreign scientists the issues of accounting and auditing are being considered through the theory of behavioral accounting. On the other hand, in the studies of Ukrainian scientists the behavioral accounting in accounting and auditing almost was not considered. The main meaning of the theory of behavioral accounting is not to consider the accounting and auditing exclusively in numbers, but to consider that accountants and auditors are people with a specific profession who behave according to their feelings and thoughts. It is customary to consider the concept of behavioral accounting according to the following topics: the influence of accounting information on behavior, management control, audit, ethics. The way the information is perceived and applied has an important influence on people's behavior and management decision-making. The financial and non-financial information used for decision-making is considered. The financial information plays a key role in structured decision-making problems, while non-financial information is considered more useful for problems of unstructured decision-making, such as identifying new business opportunities. For its part, two characteristic styles of information's application are distinguished: diagnostic and interactive. In the application of the diagnostic style the senior managers pay attention to the achievement of planned results, while managers who lead an interactive style practice continuous exchange of information between members of the organization. In the article it is also considered the behavioral aspects of planning, including financial, management and control. The results of employees' work can be assessed on the basis of financial indicators or on the basis of non-financial information. Both approaches have their advantages and disadvantages. In the 1990's, the system of balanced indicators became widespread to assess all aspects of management activity, which applies both financial and non-financial indicators with an emphasis on non-financial indicators. Such a system has four measurement categories, including financial, customers, internal business processes, and employee's study and growth prospects. The theory of behavioral accounting is widely used in audit research. The following publications will consider the behavioral aspects of auditing in the context of: auditor independence, auditor professional judgment and professional skepticism, fraud in financial statements.

Individual and Organisational Attributes on Public Accountants’ Professional Scepticism: A Qualitative Examination

Purpose: The present study examined the impacts of individual and organisational attributes on accountants’ professional scepticism levels in the Malaysian public sector. Specifically, three individual and two organisational attributes with corresponding impacts on accountants’ professional scepticism in the public sector were appraised. Design/ Methodology/ Approach: This study utilised a qualitative approach via interviews with 16 Malaysian public-sector accountants over three months. Findings: All five individual and organisational attributes significantly impacted the accountants’ professional scepticism. Individual attributes included experience, attitude, and integrity, whereas organisational attributes encompassed regulation and technology. Research Limitations/ Implications: Professional scepticism is a crucial element significantly influenced by both individual and organisational characteristics. Practical Implications: The findings revealed the importance of understanding accountants’ individual and organisational attributes in the public sector. The understanding could guide the government in performing the necessary actions to improve the professional scepticism level among accountants. Originality/ Value: This study initiated the examination of the impact of organisational attributes on accountants’ professional scepticism in the Malaysian public sector Keywords: Professional scepticism, individual attributes, organisational attributes, accountants, public sector

Enhancing the auditor's mindset: a framework for nurturing professional skepticism

PurposeFollowing recent high-profile audit failures, concern has been expressed that auditors are not demonstrating sufficient skepticism when exercising professional judgment. In particular, client assumptions and estimations relating to hypothetical valuations in financial reporting are not being challenged. This paper seeks to address the issue by advancing a decision-making framework aimed at guiding auditors beyond regulatory reductionist thinking towards an enhanced understanding of the cognitive processes which shape professional judgment in forming a reliable audit opinion.Design/methodology/approachDrawing on the normative philosophical and theological teachings of Bernard Lonergan, the authors' decision-making framework embodies reflective thinking and the data of consciousness to highlight the central role played by enquiry in the dynamics of understanding, judgment and decision-making. Such enquiry elicits challenge of the management bias inherent in hypothetical valuations.FindingsAuditing through a Lonerganian lens allows auditors to reflect on their approach to objective decision-making by offering a set of cognitive tools to enhance the enquiry essential for nurturing professional skepticism.Originality/valueThis paper contributes to the literature by developing the somewhat neglected discourse on the cognitive processes essential for professional skepticism and audit judgment. The authors demonstrate how Lonerganian self-appropriation intensifies an awareness of the recursive cognitive activities pertinent to objective judgment and decision-making. This awakened consciousness has the potential not only to change how auditors question evidence to make informed judgments and decisions, but also to normalize the practice of challenge.

Professional skepticism for green reputation clients: A mixed method study of technology enabled audits

The research investigated auditor’s Professional Skepticism (PS) mindset while auditing the “integrated financial statement” of green reputation clients in a technology enabled audit environment. The study tries to understand the difference in thought and action of auditors based on perception of their client as sustainability responsible or not. Subsequently, the study offers meaningful insights about the nuances that upholds this distinction. This research comprises two studies using the mixed method procedure as per Creswell and Clark (2017). The first study is a 2 x 2 between subject experiment. The second study uses the Theories in Use (TiU) methodology by analyzing qualitative interviews of practicing auditors in an emerging market setting. The findings of study 1 (comprising the experiment) highlight that auditors are more professionally skeptical while auditing clients with a green reputation. Study 2 (utilizing qualitative interviews) points out that technology assists the PS mindset by enhancing the audit effectiveness and audit efficiency of green client’s audit. The study offers an in-depth understanding of the level of auditor’s PS mindset toward clients with a green reputation, and therefore demystifies the inherent forces at play during such a phenomenon. Although the setting of the study is an emerging market, the study offers transferable findings to improve the overall understanding of auditor’s mindset. The study has implications for multiple actors engaged in the audit process, viz., auditors, audit firms, regulator of the audit profession, audit committees, academia, and policy makers.

Behaviorism in auditing and its influence on the legal content of international standards on auditing

The paper is devoted to behaviorism in the field of audit activity, which in the form of the theory of behavior is widely used in scientific research and practice in foreign countries, especially in the USA. The least the problem of behaviorism is studied in Ukraine and then in rather general terms. It is shown that the main source of behaviorism is the philosophy of positivism and pragmatism. Its external manifestation is considered to be an individual reaction on stimuli of an external environment. In connection with this, the motives of the behavior of individuals are assigned a leading role in determining the normative regulation of activity of participants in accounting and auditing. It should also be noted that the precedents for assessing the subjects' behavior in this aspect constitute the system of Anglo-American law. The specified legal system has significant differences from the continental or European law to which Ukraine belongs. The dominance in conceptual law of normativism leads objectively to difficulties on introduction of International Standards on Auditing (ISA) based on the Anglo-American legal system in European countries and Ukraine. The paper also considers how a behavioral approach is used in specific ISA. As the example the ISA 315 "Identification and Assessment of Risks of Material Misstatement" and the ISA 240 "Auditor's Responsibilities Regarding Fraud in the Audit of Financial Statements" are taken. In particular, ISA 315 proposes to assess the risks of material misstatement through an understanding of the entity and its environment. It is emphasized that such an understanding of the business entity should not be a formal act as a legal entity, but from the position of the real behavior of management personnel. According to the ISA 240, the auditor should exercise professional skepticism throughout the audit, with recognizing the possibility of significant distortion due to fraud or error regardless of management's positive assessment. Based on professional skepticism, regarding the identification by the auditor of specific opportunities to commit fraud, the ISA 240 recommends to analyze the motives of the management personnel's behavior, pressure from the external environment, opportunities to commit fraud, attitudes and logical justification of wrongdoing. The final part of the paper gives relevant recommendations for harmonizing the ISA with domestic regulatory and legal acts and the practical activity of auditors on the territory of Ukraine.

Auditor Independence And Its Influence On Accounting Behavior: A Systematic Literature Review

This paper provides a comprehensive analysis of auditor independence and its impact on accounting behavior. The research framework focuses on four main threats to auditor independence: client importance, non-audit services, auditor tenure, and client affiliation with CPA firms. The study utilizes Google Scholar as the database source and Harzing's Publish and Perish as the data search application to identify and analyze 50 relevant articles published between 2013 and 2023 in the field of auditor independence and its influence on accounting behavior. The research findings highlight the potential risks and implications of these threats on auditor independence, including financial dependence, familiarity, self-interest, and reduced skepticism. Mitigating strategies such as regulatory oversight, ethical guidelines, transparency, rotation of audit firms or engagement teams, and professional skepticism are discussed to address these threats and uphold auditor independence. The conclusions emphasize the importance of ongoing monitoring, evaluation, and improvement of audit quality to ensure the effectiveness of independence safeguards. This research contributes to a better understanding of the complex relationship between auditor independence and accounting behavior, providing valuable insights for regulators, auditing firms, and researchers in promoting the integrity of financial reporting and strengthening confidence in the auditing profession.

Moderating Auditor Ethics: Examining Independence, Competence, Task Complexity, Time Pressure, and Professional Skepticism Influence on Audit Quality

This study aims to examine and analyze the Effect of Independence, Competence, Task Complexity, Time Pressure, and Professional Skepticism of Auditors on Audit Quality with Auditor Ethics as Moderating Variable. This research was conducted using quantitative methods. The population in this study are several auditors who have participated in filling out questionnaires from several KAP’s in 2021. Where the authors determine the population using random sampling. And Multiple Linear Regression analysis technique. Based on the results of this study indicate that Independence, Competence, Task Complexity and Professional Skepticism have a positive effect on Audit Quality. Meanwhile, Time Pressure has no effect on Audit Quality. Auditor Ethics can strengthen the influence of Auditor Independence, Competence, Task Complexity, and Professional Skepticism on Audi Quality. Meanwhile, Auditor Ethics weakens the influence of Time Pressure on Audit Quality.

The impact of partner perfectionism on audit quality: the mediating role of professional skepticism in the Egyptian context

Purpose This paper aims to investigate the relationship between audit partner perfectionism traits and audit quality in Egypt, emphasizing the mediating role of professional skepticism. Design/methodology/approach A mixed-methods approach was used, combining a questionnaire and scenario-based questions for audit partners with secondary data from audited financial statements. The relationships between study variables were tested using structural equation modeling. Findings Results denote a significant indirect effect between partner perfectionism traits and audit quality through their professional skepticism. Perfectionism has a significant positive impact on partner professional skepticism, and skepticism influences audit quality. Practical implications This study offers opportunities to enhance financial reporting quality, allowing investors to confidently allocate financial market resources. Audit firms can consider the personality traits of auditors in the selection process, team formation and designing training programs. Regulators can use these findings to consider the role of personality traits and attitudes in audit quality when developing regulations and quality assurance systems in Egypt. Originality/value To the best of the authors’ knowledge, no studies have examined the effect of partners’ perfectionism traits on professional skepticism and audit quality, especially in Egypt. By examining audit partners, who shape the tone at the top and are accountable for reputation, this study adds a novel dimension to understanding the impact of their qualities on audit outcomes. Moreover, combining survey and secondary data allows us to link these qualities with audit quality, objectively testing our hypotheses.

Profesional Skeptimisme Auditor dan Kualitas Audit dalam Era Blockchain (Auditor Professional Skepticism and Audit Quality in The Blockchain Era)

This research aims to identify the influence of professional skepticism on audit quality through blockchain technology as a moderating variable. This research also tries to find determining factors that can increase auditors' professional skepticism. Data analysis was carried out using SEM-PLS, with auditor analysis units in Indonesia. Data was collected through questionnaires sent to auditor managers, senior auditors and junior auditors as objects receiving pressure from clients in insurance engagements. The research results show that auditors' professional skepticism has a positive influence on audit quality. The interaction between client time limit pressure and audit quality is strengthened by the presence of professional skepticism. These findings conclude that auditors must increase professional skepticism in technological sophistication to improve audit quality. In addition, the results of this study indicate that the pressure of client time constraints has a positive influence on professional skepticism.

The Impact of Professional Skepticism, Competence, and Independence on Audit Quality During the Covid-19 Pandemic

This research is empirical research that aims to analyze the influence of professional skepticism, competence, and independence on audit quality during the COVID-19 pandemic. The population studied was 81 staff at the Leonard, Mulia, and Richard Semarang Public Accounting Firm. The sampling technique used is saturated. The data used is primary data obtained by distributing questionnaires to audit staff and 77 questionnaires could be processed. The data technique used in this research is multiple linear regression. The results show that professional skepticism, competence, and independence have a positive effect on audit quality during the COVID-19 pandemic. The implication are auditors should not delay decisions, should stick to the applicable Financial Accounting Standards regulations, and maintain an independent attitude in carrying out the audit process.

Public accountant professional skepticism behavior in improving audit quality: A path analysis

This study investigates the relationship between behavioral observation responses, namely accountability, due professional care, and professional skepticism, and their collective influence on audit quality within public accounting firms. By highlighting the mediating role of professional skepticism, our study offers a model that integrates cognitive dissonance theory with attribution theory, thereby advancing understanding in the field. Furthermore, this study employs a one-shot study approach with individual auditors as the unit of analysis. Data was collected through surveys administered to auditors working in public accounting firms registered with The Indonesian Institute of Certified Public Accountants in Jakarta. The sample comprised 123 auditors selected via Stratified Random Sampling. Path analysis using the AMOS program was employed for data analysis. The results indicate that when auditors feel a sense of accountability and exercise due professional care, they are more inclined to approach their work with heightened skepticism, positively influencing audit quality. This suggests that accountability and due professional care serve as catalysts for fostering a critical mindset among auditors. Consequently, the combined impact of these factors, along with professional skepticism, significantly contributes to enhancing audit quality, highlighting the interconnectedness of these elements in driving effective auditing practices.

Professional Skepticism in Practice: An Analysis of Auditors’ Stories

SUMMARY Professional skepticism is a complex and ambiguous construct. Prior research has primarily focused on examining antecedents that affect professional skepticism. Yet, little is known about auditors’ perceptions and experiences of exercising professional skepticism in everyday audit practice. Through analyzing 78 stories collected from interviewing 35 auditors, our research finds that exercising professional skepticism constitutes a sensemaking process that involves noticing discrepant cues, creating interpretations, and arguing with clients to give sense. Within this process, professional skepticism is constructed by auditors’ microlevel actions and interactions in their collective efforts to seek and interpret meanings of discrepant cues. Prior studies highlight the cognitive and psychological nature of professional skepticism at an individual level. Our study provides an incremental understanding of how professional skepticism is enacted and collectively constructed by auditors in practice and shows that the meanings and practices of professional skepticism are fluid and emergent.

Does The Characteristics Of The Auditor Effect Audit Quality?

The purpose of this study is to determine the effect of the auditor's characteristics such as spiritual intelligence, competence, experience, independence, and professional skepticism on audit quality. The sample in this study is 108 respondents which come from all auditors in accounting firms in Bali. The analysis technique used in this study is multiple linear regression. The results showed that spiritual intelligence has a positive effect on audit quality. On the other hand, competence, experience, independence, and professional skepticism does not effect audit quality. This study implies that an auditor who has high spiritual intelligence will be able to act and behave ethically in his profession and organization. Spiritual intelligence makes individuals able to distinguish between good and bad actions. In conducting audit examinations, spiritual intelligence will influence the auditor to act following the code of ethics and the accounting profession. Spiritual intelligence is able to avoid actions that can reduce audit quality.