Conceptualization of Auditors' Experiences of Professional Skepticism: A Phenomenographic Study

Objective: Professional skepticism is a critical concept in the auditing process, and researchers and standard setters have always emphasized the importance of applying an appropriate level of professional judgment in auditing. This study aims to explore auditors' experiences of the concept of professional skepticism in auditing and to classify auditors' concepts and perceptions of this phenomenon.

Methodology: The research approach is interpretive and was conducted using the qualitative phenomenographic research method. The phenomenographic approach is based on the idea that different people can have different experiences and/or concepts of a phenomenon. phenomenographic seeks to identify and classify these different experiencesA maximum variation sampling method was used. The data was collected in 2023 through interviews with 14 experts in the auditing profession and analyzed using MAXQDA software.

Findings: According to the research findings, after analyzing the data collected from the interviews, five descriptive categories of how auditors perceive and experience professional skepticism in auditing emerged. These categories were: Professional skepticism as the auditor's subjective attitude: Based on the interviews, professional skepticism is described as an individual's skeptical mindset and arises from a tendency or willingness to ask questions and critically examine audit evidence. In this descriptive category, when the auditors are focused on the issue of professional skepticism, they only consider themselves and do not see beyond themselves. Therefore, the external horizon or perceptual boundary is the "individual", and the internal horizon is the "subjective attitude", which includes three variable elements: "critical thinking", "inquiring and questioning", and "personal characteristics". In this regard, the participants believe that the auditor's imagination, creativity, self-confidence and self-esteem, interpersonal understanding, and personality traits lead to the formation of an inquiring mind and critical evaluation of audit evidence, and their awareness of unreasonable and illogical relationships in the accounts.

Professional Skepticism as Knowledge Gained Over Time: According to this descriptive category, professional skepticism in auditing is defined as "the knowledge that is formed over time and with the auditor's increasing experience with audit work." In this category, the external horizon is the "individual" and the internal horizon is "knowledge acquisition over time." Based on the interviews, the experiences that the auditor gains over time and the challenges that they face in performing audit work, such as being questioned in forums or by regulatory bodies or senior management, lead to a deeper perspective and a higher level of skepticism.

Professional Skepticism as the Absence of the Presumption of Innocence in Auditing: According to this descriptive category, professional skepticism in auditing is defined as "the absence of the presumption of innocence in auditing." In this category, the perceptual boundary is at the level of the audit profession. In this category, the external horizon is the "audit profession" and the internal horizon is the "absence of the presumption of innocence in auditing," which includes three variable elements: "conservative bias in audit judgment," "belief in the absence of neutrality in auditing," and "action based on professional skepticism." In this view, the skeptical auditor emphasizes evidence of error more than evidence of the absence of error. At this level, the auditor approaches management's claims with distrust and suspicion, challenges those claims, and seeks evidence of bias in the information. The auditor also applies conservative bias in audit judgment.

Professional Skepticism as Situational Doubt: According to this descriptive category, professional skepticism in auditing is defined as "a situational doubt and a transient (temporary) state that is influenced by several other factors." In this category, the perceptual boundary is at the level of the individual. Professional skepticism is seen as a temporary state that is created by situational variables. In this way, the state of doubt first affects the individual's mind, and the individual's mind then affects the individual's behavior.

Professional Skepticism as a Culture of General Inquiry: According to this descriptive category, professional skepticism in auditing is defined as "a culture of general inquiry." In this category, the perceptual boundary is at the level of society. According to the research participants, at this level, professional skepticism is rooted in the culture of inquiry that prevails in society, the cultivation of a spirit of inquiry in the educational system, and the level of skepticism of the audit firm. Behavioral values, meaning the subjective beliefs of individuals in how to manage and direct their lives, are shaped by specific professional training and the general culture of society. These beliefs are manifested in their behavior and attitude.

Conclusion: The wide range of experiences and perceptions of the concept of professional skepticism in auditing among the participants illustrates the complexity of this concept. Given that professional skepticism affects the auditor's judgment and decision-making, the heterogeneous perception of the concept of professional skepticism among auditors can lead to problems in complying with professional requirements and standards. Accordingly, it is suggested that by emphasizing the concept of professional skepticism in the curriculum of accounting and auditing courses and revising the syllabus of textbooks, the understanding of future auditors of this important and complex issue can be improved. In addition, it is suggested that standard setters use these findings to review and expand the definition of professional skepticism in the future