The Importance of Seduction in Understanding the Impact of Trait Scepticism on Audit Judgments

Mohammad Khan, Noel Harding

Research output: Other contribution to conferenceAbstractpeer-review

Abstract

We extend the current understanding of the impact of trait skepticism on the level of professional scepticism reflected in audit judgments by modelling an omitted variable that has the potential to explain the mixed results reported in the extant literature. Specifically, we propose that an individualâ''s underlying propensity towards falling prey to seduction in a professional sense (e.g., attractive and fashionable office environment) (trait seduction) attenuates the effect of trait skepticism on audit judgments. Using a scale that we develop to measure trait seduction, we find that the modelling of trait seduction reveals the intuitive relationship between trait scepticism and the level of scepticism reflected in audit judgments. We further find that this attenuating effect is most pronounced in situations where seductive elements are subtly placed in the environment, but less so when active attempts are made to highlight the presence of these seductive elements. Given the pressure on auditors to elevate the level of professional scepticism they exercise, and calls for research to help auditors in this regard, our findings have important implications for both practice and future research.
Original languageEnglish
Number of pages38
Publication statusPublished - 2015
Event13th ANCAAR Audit Research Forum 2015 - Allan Barton Forum, College of Business and Economics, Canberra, Australia
Duration: 04 Dec 201505 Dec 2015

Conference

Conference13th ANCAAR Audit Research Forum 2015
CountryAustralia
CityCanberra
Period04/12/1505/12/15

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