Education, Experience, and Audit Effort

Che, Limei; Langli, John Christian; Svanström, Tobias

doi:10.2308/ajpt-51896

Cited by 53 publications

(31 citation statements)

References 80 publications

(98 reference statements)

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“…Therefore, it is strongly recommended that auditors have higher levels of education, to deepen their knowledge and sharpen their skills in auditing. Overall, our findings support the perspective on how higher level of education positively affect the quality of audit process (Che et al 2017;Gul et al 2013;Li et al 2013). Notes: Trait skepticism is measured using Hurtt's skepticism scale which consists of 30 statements and the scores range from 0 to 180.…”

Section: Hypotheses Testingsupporting

confidence: 88%

“…For example, Gul et al (2013) link education to actual audit outcomes and find that auditors with a master's degree report more aggressively (i.e., they are less likely to issue a modified audit opinion) than other auditors. In a similar vein, Che et al (2017) find that partners with a master's degree exert more effort than those with a bachelor's degree, and there is a positive relationship between audit effort and the Continuing Professional Education (CPE) program. Additionally, Li et al (2016) find that auditors holding a master's degree are less likely to perform failed audits.…”

Section: Education and Trait Skepticismmentioning

confidence: 91%

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Does Accounting Education Affect Professional Skepticism and Audit Judgment?

Fatmawati

Mustikarini

Fransiska

2018

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This study examines the extent to which enrollment in accounting programs influences students' skepticism levels. We compare the skepticism scores between final-year accounting students in undergraduate and professional programs. This study also investigates the impacts of trait skepticism and situational skepticism on the participants' initial judgment of fraud or errors. Situational skepticism in this study is represented by audit experience from previous years. This study employs an experimental design of 2x3 between-subjects, where trait skepticism is divided into higher and lower levels, and the audit experience from previous years is manipulated into positive, negative and neutral. The participants in this study are 227 accounting students from both undergraduate and professional programs. The results of this study show that accounting students in the professional program are likely to exhibit higher levels of trait skepticism compared to their counterparts in the undergraduate program. The results also indicate that participants make an audit judgment based mainly on their prior experience with the client, not on their trait skepticism. This propensity is more salient particularly in the case of the less-skeptical participants. In sum, the higher that the formal education of a participant is, then the higher is his/her trait skepticism, and thus he/she is able to retain his/her skeptical judgments regardless of his/her prior experience with the client. ABSTRAK Makalah ini mengkaji tahap sejauh mana pendaftaran dalam program perakaunan mempengaruhi tahap skeptisisme pelajar. Kami membandingkan skor skeptisisme di antara pelajar perakaunan akhir tahun dalam program sarjana dan profesional. Kajian ini juga menyelidik kesan skeptisisme bawaan dan skeptisisme keadaan terhadap penilaian awal peserta terhadap penipuan atau ralat. Skeptisisme keadaan dalam kajian ini diwakili oleh pengalaman audit dari tahuntahun sebelumnya. Kajian ini menggunakan reka bentuk eksperimen 2x3 antara subjek, di mana skeptisisme bawaan dibahagikan kepada tahap yang tinggi dan rendah, dan pengalaman audit dari tahun-tahun sebelumnya dimanipulasi menjadi positif, negatif dan neutral. Peserta dalam kajian ini adalah terdiri daripada 227 pelajar perakaunan dari program sarjana dan profesional. Hasil kajian ini menunjukkan bahawa pelajar perakaunan dalam program profesional cenderung menunjukkan tahap skeptisisme bawaan yang lebih tinggi berbanding rakan sejawat mereka dalam program sarjana. Hasil kajian juga menunjukkan bahawa para peserta membuat penilaian audit berdasarkan pengalaman terdahulu mereka dengan klien, dan bukan berdasarkan skeptisisme bawaan mereka. Kecenderungan ini lebih menonjol, terutamanya untuk kes peserta yang kurang skeptikal. Kesimpulannya, semakin tinggi tahap pendidikan formal peserta, semakin tinggi skeptisisme bawaannya, dan dengan itu dapat mempertahankan penilaiannya skeptikalnya tanpa menghiraukan pengalaman terdahulunya dengan klien.Kata kunci: Pendidikan dan latihan; program profesion perakaunan; skeptisis...

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Section: Hypotheses Testingsupporting

confidence: 88%

Section: Education and Trait Skepticismmentioning

confidence: 91%

Does Accounting Education Affect Professional Skepticism and Audit Judgment?

Fatmawati

Mustikarini

Fransiska

2018

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“…Although similar attributes have already been investigated in a single‐country setting (e.g., Jha & Chen, 2015; Leventis et al, 2018), multinational audit fee studies should also place greater emphasis on such informal institutions as they should also influence the audit pricing function on a global scale. Moreover, some country‐level educational features (e.g., percentage of people with a Bachelor's degree, literacy rate or training and development of staff), have yet to be considered, despite the likelihood that they will have an impact on cross‐country variations in audit pricing, for instance by affecting the level of audit effort (Che et al, 2018). 7…”

Section: Potential Country‐level Determinants Of Audit Fees: Review Of Prior Cross‐country Literaturementioning

confidence: 99%

Importance of country factors for global differences in audit pricing: New empirical evidence

et al. 2021

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In recent years, we have seen an increasing interest in the country‐level differences in audit environments as they might have a pervasive impact on how financial statement audits are conducted around the world. We contribute to this emerging stream of research in three important ways. Firstly, we provide a comprehensive synthesis of country‐level determinants that have been employed in previous multinational auditing research. Secondly, we document economically significant differences in the overall levels of audit pricing between countries, which we interpret as a compelling evidence that audits are conducted differently in different countries. Lastly, we explain these pricing differences between countries with a large set of country variables identified in our synthesis of prior multinational auditing research. We find not only that economic and regulatory characteristics explain the most of the differences in audit pricing between countries but also that differences attributable to sociological characteristics seem to be important in the conduct of audits. As auditing as a service and profession has become increasingly globalized, our study should be of interest to a wide range of readers including researchers, practitioners and regulators.

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“…Thereby, according to IAASB’s Framework on audit quality, the “time dedicated to the audit” is one key element contributing to audit quality. Empirical evidence suggests that audit effort is positively associated with audit quality (Caramanis & Lennox, 2008; Che et al, 2018; Xiao et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Auditor’s Income Taxation and Audit Quality

Steller

Pummerer

2021

Sage Open

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We use an analytical research model to analyze the effect of the auditor’s personal income tax on audit effort. We show that the auditor’s level of care crucially depends on the tax rate and amount of loss recognition. Taxes may cause paradoxical effects on the auditor’s effort, audit quality, and marginal audit fee if profits and losses are taxed differently or in case of risk-averse decision-makers. Therefore, compared with the pretax setting, taxes have distortional effects. Thus, common auditing standards (e.g., International Standards on Auditing framework) will imply diverse audit quality and marginal audit fees depending on the respective national tax law. Our results are relevant for standard setters, auditors, and financial statements’ addressees.

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Education, Experience, and Audit Effort

Cited by 53 publications

References 80 publications

Does Accounting Education Affect Professional Skepticism and Audit Judgment?

Does Accounting Education Affect Professional Skepticism and Audit Judgment?

Importance of country factors for global differences in audit pricing: New empirical evidence

Auditor’s Income Taxation and Audit Quality

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