The Relationship Between Professional Skepticism and Ethical Decision-Making in Audit Practice

Posted: Jul 04, 2017

• Quinn Jennings
• Theo Watson
• Emilia Cruz

Abstract

The auditing profession stands at a critical juncture where public trust and professional credibility are continually tested by complex financial environments and evolving ethical challenges. Professional skepticism, long regarded as a cornerstone of audit quality, represents the auditor's questioning mindset and critical assessment of audit evidence. Simultaneously, ethical decision-making forms the moral compass guiding auditors through dilemmas where professional judgment intersects with moral responsibility. While both constructs have been extensively studied in isolation, the fundamental relationship between professional skepticism and ethical decision-making remains inadequately understood through conventional research paradigms. This research gap is particularly concerning given that audit failures often involve breakdowns in both skeptical inquiry and ethical reasoning. Traditional auditing research has predominantly approached professional skepticism and ethical decision-making as distinct competencies, examining them through separate theoretical lenses. Professional skepticism has been conceptualized through cognitive psychology frameworks focusing on judgment and decision-making, while ethical decision-making has been explored through moral philosophy and behavioral ethics perspectives. This disciplinary segregation has limited our understanding of how these critical audit competencies interact at cognitive, affective, and behavioral levels.