Auditors’ Professional Skepticism

Olsen, Carmen

doi:10.1007/978-3-319-49896-6_1

Cited by 4 publications

(3 citation statements)

References 21 publications

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“…In this context, most auditees believe that due to their broad experience, auditors are skilful and well-trained in conducting audit tasks (Shamsuddin and Bakar, 2020). More specifically, the International Standard on Auditing defines professional scepticism as an attitude including a questioning mind and alertness to conditions of misstatement, error, and fraud, all of which require a critical assessment of the audit (as cited in Olsen (2017). In addition, professional scepticism refers to the ability to recognise situations or factors which require a deep inspection or review.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

“…Auditors should be sceptical about the information and reports they receive, allowing them to identify misstated material. For example, in situations where the possibility of incorrect statements is high, auditors may have presumptive doubts or be suspicious of wrong financial statements (Olsen, 2017). The auditing research has identified that professional scepticism positively affects senior management's interpersonal trust.…”

Section: Internal Auditor's Interpersonal Trust Buildingmentioning

confidence: 99%

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Internal auditor's interpersonal trust building: the Israeli public sector

Eshet

2023

JPBAFM

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PurposeThis paper investigate the antecedents of the public sector's senior management in interpersonal trust relationships involving sceptical internal audits in public services administrations. This is fundamental for a positive audit, as it affects the auditing relationship and assures a sound public administration.Design/methodology/approachThe author surveyed 261 senior management from 24 Israel's local authorities (about 30%), representing large, medium and small administrations in Israel's North District.FindingsThe results indicate that senior management's antecedents to trust sceptically minded internal audits are positive for audit knowledge sharing. Findings also reveal that the internal auditor's ability, integrity and benevolence significantly impact senior management's trust. Whereas open communication does not significantly affect the senior management's propensity to trust, its satisfaction with its internal auditor fosters positive trust and support.Practical implicationsUnderstanding the antecedents of the senior public manager on internal audit benefits the audit outcomes. Albeit audit professional scepticism's interpersonal trust relationship with senior public manager influences the audit. Audits efficiently related to organisational culture and outcomes.Originality/valueA new practical model of senior management trust antecedents is presented for a more effective auditing system and public administration. The model is original, as no other empirical studies have yet dealt with senior management's trust in internal audits in the public sector.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Section: Internal Auditor's Interpersonal Trust Buildingmentioning

confidence: 99%

Internal auditor's interpersonal trust building: the Israeli public sector

Eshet

2023

JPBAFM

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“…On the other hand, with regard to studies conducted by Simon (1997), bounded rationality among auditors justifies the relevance of auditors' skeptical judgments and decisions through a dual process system perspective (Olsen, 2017). In a nutshell, bounded rationality explains that based on the insufficiency of human cognition in the way of achieving optimal results suggested by conventional economic theory, real-world optimization is substituted by satisfying pragmatic solutions (Yankova, 2015).…”

Section: Theoretical Foundations and Hypothesis Developmentmentioning

confidence: 99%

Auditors' narcissism and their professional skepticism: evidence from Iran

Safarzadeh

Mohammadian

2023

ARA

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PurposeThis study aims to examine the association between Iranian auditors' narcissism and the auditors' professional skepticism.Design/methodology/approachThe authors' sample is comprised of 355 professional auditors working in the private and public sectors in Iranian firms in 2022. The authors use cross-sectional multivariate regression as the main methodology, along with the structural equation modeling (SEM) technique.FindingsThe authors find that a higher level of narcissism leads to a greater level of professional skepticism among auditors, which ultimately can enhance the quality of the audit process. The results provided via the robustness tests also supported this finding.Originality/valueThe authors' findings further the understanding of the role of narcissistic personality traits in improving professional skepticism among auditors of an Islamic and emerging country. In addition, audit firms and audit partners can also consider the findings of this study and enhance the effectiveness of audit processes by assigning appropriate employees with certain personalities to specific tasks.

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Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the Concept Release, Potential Approach to Revisions to PCAOB Quality Control Standards

Brown¹,

Hermanson²,

Higgs³

et al. 2020

Current Issues in Auditing

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On December 17, 2019, the Public Company Accounting Oversight Board (the Board or PCAOB) issued a request for comment on its Concept Release, Potential Approach to Revisions to PCAOB Quality Control Standards . The Board is considering revising its Quality Controls (QC) standards to focus firms on improving their QC systems. To reduce the compliance burden on firms, the Board is considering aligning its QC standards with those of the proposed International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements (proposed ISQM 1). The comment period ended on March 16, 2020. This commentary summarizes the participating committee membersâ views on selected questions on three topics presented in the Concept Release: Resources (questions 31, 32, 34, 36, 37), The Monitoring and Remediation Process (questions 45, 46, 47), and Roles and Responsibilities of Individuals (question 52).

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Auditors’ Professional Skepticism

Cited by 4 publications

References 21 publications

Internal auditor's interpersonal trust building: the Israeli public sector

Internal auditor's interpersonal trust building: the Israeli public sector

Auditors' narcissism and their professional skepticism: evidence from Iran

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the Concept Release, Potential Approach to Revisions to PCAOB Quality Control Standards

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