A Model and Literature Review of Professional Skepticism in Auditing

Nelson, Mark W.

doi:10.2308/aud.2009.28.2.1

Cited by 529 publications

(602 citation statements)

References 168 publications

Supporting

Mentioning

485

Contrasting

Unclassified

Order By: Relevance

“…Second, internationally there has been criticism of auditors for failing to exercise sufficient professional skepticism in the conduct of their audits (Accounting and Corporate Regulatory Authority [ACRA] [IFIAR] 2014[IFIAR] , 2015. Numerous suggestions have been made on how auditing firms can enhance professional skepticism (Nelson 2009;CAQ 2010;Glover and Prawitt 2013;Hurtt, BrownLiburd, Earley, and Krishnamoorthy 2013;Peecher, Solomon, and Trotman 2013;IAASB 2015;Westermann, Cohen, and Trompeter 2016). One such suggestion is exploring the role of communications of engagement partners and others in influencing the appropriate application of professional skepticism (IAASB 2015).…”

mentioning

confidence: 99%

The Effect of Partner Communications of Fraud Likelihood and Skeptical Orientation on Auditors' Professional Skepticism

Harding¹,

Trotman

2016

Auditing: A Journal of Practice &Amp; Theory

View full text Add to dashboard Cite

SUMMARY:We investigate the effect of partner communication on the level of professional skepticism in auditor judgments and actions within the context of the fraud brainstorming discussion meeting where the partner is of the view that there is a low likelihood of fraud. Across two studies, we examine the effect on professional skepticism of the partner's communication on the likelihood of fraud (making their own view known, making management's view known, or not making any view known) and the skeptical orientation being encouraged (outward orientation toward the veracity of management representations and/or inward toward the fallibility of the auditor's judgment processes). We find that auditors exhibit higher levels of professional skepticism when the partner expresses management's view, rather than their own view or no view, that there is a low likelihood of fraud. We also consider what causes these differences. Emphasizing an inward skeptical orientation was not found to be more effective in encouraging professional skepticism in audit judgments than emphasizing an outward skeptical orientation. Importantly, emphasizing both an inward and outward skeptical orientation was more effective in encouraging professional skepticism in audit actions than emphasizing only an outward orientation.

show abstract

mentioning

confidence: 99%

The Effect of Partner Communications of Fraud Likelihood and Skeptical Orientation on Auditors' Professional Skepticism

Harding¹,

Trotman

2016

Auditing: A Journal of Practice &Amp; Theory

View full text Add to dashboard Cite

show abstract

“…Pengalaman dapat memfasilitasi timbul nya skeptisisme profesional dalam diri auditor apabila pengalaman tersebut telah memberikan pengetahuan tentang frekuensi kesalahan dan non kesalahan, serta pola bukti yang menunjukkan risiko tinggi dari salah saji dalam laporan keuangan (Nelson, 2009). Pengalaman tersebut berpengaruh terhadap skeptisisme profesional auditor, karena pengetahuan tentang penyebab kesalahan dan frekuensi kesalahan akan membuat auditor bereaksi pada pos-pos yang berisiko tinggi, serta menjadikan auditor lebih waspada terhadap potensi timbulnya kesalahan yang sama pada audit berikutnya.…”

Section: Pengalaman Audit Dan Skeptisisme Profesional Auditorunclassified

“…Untuk dapat melaksanakan skeptisisme profesional, auditor harus memahami implikasi direksional bukti terhadap risiko audit, dan juga harus memiliki kemampuan untuk menerapkan pengetahuan mereka tentang pola bukti dan frekuensi kecurangan/non-kecurangan (Nelson, 2009). Auditor dengan masa kerja lebih lama umumnya telah melakukan lebih banyak penugasan audit, sehingga memiliki pengalaman lebih banyak dalam mendeteksi potensi kesalahan dan kecurangan selama audit.…”

unclassified

Pengaruh Faktor-Faktor Personal Terhadap Skeptisisme Profesional Auditor

Larimbi¹,

Subroto²,

Rosidi³

2017

EKUITAS

View full text Add to dashboard Cite

show abstract

“…An auditor is viewed as skeptical if he or she is sensitive to evidence that reduces the risk of failing to detect errors in the client's financial statements (McMillan & White 1993). Based on a review of professional skepticism literature, Nelson (2009) summarizes the definition of professional skepticism as a heightened assessment of risk that an assertion is incorrect and conditional on the information available to the auditor. The objective of the present study is to provide evidence on the suitability of using the Hurtt (2010) professional skepticism scale to measure professional skepticism in the Malaysian environment.…”

Section: Introductionmentioning

confidence: 99%

“…The Malaysian auditing professional standards understand professional skepticism as an attitude that includes a questioning mind and critical assessment of audit evidence (MIA 2008). In the academic literature, no consensus on the definition of professional skepticism exists (Nelson 2009). Shaub (1996) equates professional skepticism with suspicion as opposed to trust, implying that auditors with a skeptical disposition have a lower level of interpersonal trust.…”

Section: Introductionmentioning

confidence: 99%