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Cognitive Dissonance and Auditor Professional Skepticism
Nasrin Yousefzadeh1 , Zahra Masoumi Bilondi2 , Azam Pouryousof3
1- Assistant Professor of Accounting Department, Vali -e- Asr University of Rafsanjan, Rafsanjan, Iran. (n.yousefzadeh@vru.ac.ir)
2- Assistant Professor of Accounting Department, Payame noor university, Tehran, Iran.(Corresponding Author) , z.masoumi@pnu.ac.ir
3- Assistant Professor of Accounting Department, Payame noor university, Tehran,Iran .(Pouryousof@pnu.ac.ir)
Abstract:   (34 Views)
Professional skepticism, as a fundamental requirement for audit quality, is based on the vital link between judgment based on professional skepticism and actions based on professional skepticism. The present study investigates how pressures (incentives) in audit environment can reduce audit quality due to the disconnection between judgment based on professional skepticism (risk assessment) and action based on professional skepticism (audit tests). In this regard, experimental research was conducted to investigate the effect of cognitive dissonance on auditor professional skepticism and their subsequent assessment of professional skepticism. The statistical sample of the research is 91 people consisting of auditors, senior auditors, supervisors, senior supervisors, managers and partners working in the trusted auditing institutions of the Tehran Stock Exchange and Securities Organization in 2024 which were selected by available sampling method. In order to test research hypotheses, independent t-test was used. The results indicate that when auditors fail to perform high professional skepticism-based actions in line with high professional skepticism judgments and experience cognitive conflict, they change their attitude towards low-ranking professional skepticism-based actions to higher (higher rank). Also, auditors who experience cognitive conflict revise their assessment of risk (professional skepticism-based judgment) downwards. This leads to less overall professional skepticism and, as a result, lower audit quality. Based these findings, improving audit quality can be done by strengthening the critical link between judgment based on professional skepticism (risk assessment) and actions based on professional skepticism (audit tests). These findings can be useful for audit institutions, official auditors community and policy makers in order to improve audit quality.
Keywords: professional skepticism, cognitive dissonance, audit quality.
     
Type of Study: Research | Subject: Special
Received: 2025/02/1 | Accepted: 2025/05/29 | Published: 2024/09/21
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