Understanding of Professional Sckeptis: Are The Sequence of Evidence and Critical Thinking Determining Factors? (Experimental Research)

R Nelly Nur Apandi, Alfira Sofia, Hanifa Zulhaimi

Abstract


Understanding professional skepticism will help the auditor to assess the risks of material misstatement in the financial statements appropriately. One of the efforts lecturers can make to improve this understanding is through an audit learning model that links efforts to collect and evaluate audit evidence into question exercises. This study aims to see audit learning regarding evidence collection (sequence of evidence) and evidence assessment (critical thinking about mitigation risk) can influence students' understanding of skepticism. The research was conducted on 120 students of the UPI accounting study program class of 2017 and 2018. The research method was carried out by experiment. The research design in this study used a 2x2 factorial design. The study results prove that learning about evidence collection (sequence of evidence) and assessment of evidence (critical thinking about mitigation risk) increases understanding of professional skepticism. The study results have implications for the development of audit learning methods that emphasize critical thinking efforts about risk mitigation that can increase students' understanding of professional skepticism.


Keywords


sequence of evidence; critical thinking; risk mitigation; risk material misstatement and professional skepticism

Full Text:

PDF

References


Asare, S. K., & Messier, W. F. (1991). A Review of Audit Research Using the Belief-Adjustment Model, (1990).

Bamber, E. M., Ramsay, R. J., & Tubbs, R. M. (1997). BELIEF-ADJUSTMENT MODEL AND ALTERNATIVE ATTITUDES TO EVIDENCE IN AUDITING, C, 249–268.

Brown, C. E., & Solomon, I. (1991). Configural information processing in auditing: The role of domain-specific knowledge. The Accounting Review, 66(1), 100. Retrieved from http://www.jstor.org/stable/pdfplus/247708.pdf?&acceptTC=true&jpdConfirm=true%5Cnhttp://www.jstor.org/stable/247708%5Cnhttp://www.jstor.org.www2.lib.ku.edu:2048/stable/pdfplus/247708.pdf

Chiang, C. (2016). Conceptualising the linkage between professional scepticism and auditor independence. Pacific Accounting Review, 28(2), 180–200. https://doi.org/10.1108/PAR-08-2015-0034

Forawi, S. A. (2016). Standard-based science education and critical thinking. Thinking Skills and Creativity, 20, 52–62. https://doi.org/10.1016/j.tsc.2016.02.005

Hung, Y. S., & Cheng, Y. C. (2018). The impact of information complexity on audit failures from corporate fraud: Individual auditor level analysis. Asia Pacific Management Review, 23(2), 72–85. https://doi.org/10.1016/j.apmrv.2017.09.002

Kern, B. B. (2001). Structuring financial statement analysis projects to enhance critical thinking skills development. Journal of Accounting Education, 18(4), 341–353. https://doi.org/10.1016/S0748-5751(01)00005-7

Knechel, W. R. (2007). The business risk audit: Origins, obstacles and opportunities. Accounting, Organizations and Society, 32(4–5), 383–408. https://doi.org/10.1016/j.aos.2006.09.005

Manita, R., Elommal, N., Baudier, P., & Hikkerova, L. (2020). Technological Forecasting & Social Change The digital transformation of external audit and its impact on corporate governance. Technological Forecasting & Social Change, 150(December 2018), 119751. https://doi.org/10.1016/j.techfore.2019.119751

Nolder, C. J., & Kadous, K. (2018). Accounting , Organizations and Society Grounding the professional skepticism construct in mindset and attitude theory : A way forward ☆. Accounting, Organizations and Society, 67(December 2014), 1–14. https://doi.org/10.1016/j.aos.2018.03.010

Schultz, J. J., Bierstaker, J. L., & O’Donnell, E. (2010). Integrating business risk into auditor judgment about the risk of material misstatement: The influence of a strategic-systems-audit approach. Accounting, Organizations and Society, 35(2), 238–251. https://doi.org/10.1016/j.aos.2009.07.006

Stanley, T., & Marsden, S. (2013). Accountancy capstone: Enhancing integration and professional identity. Journal of Accounting Education, 31(4), 363–382. https://doi.org/10.1016/j.jaccedu.2013.08.002

Asare, S. K., & Messier, W. F. (1991). A Review of Audit Research Using the Belief-Adjustment Model, (1990).

Bamber, E. M., Ramsay, R. J., & Tubbs, R. M. (1997). BELIEF-ADJUSTMENT MODEL AND ALTERNATIVE ATTITUDES TO EVIDENCE IN AUDITING, C, 249–268.

Brown, C. E., & Solomon, I. (1991). Configural information processing in auditing: The role of domain-specific knowledge. The Accounting Review, 66(1), 100. Retrieved from http://www.jstor.org/stable/pdfplus/247708.pdf?&acceptTC=true&jpdConfirm=true%5Cnhttp://www.jstor.org/stable/247708%5Cnhttp://www.jstor.org.www2.lib.ku.edu:2048/stable/pdfplus/247708.pdf

Chiang, C. (2016). Conceptualising the linkage between professional scepticism and auditor independence. Pacific Accounting Review, 28(2), 180–200. https://doi.org/10.1108/PAR-08-2015-0034

Forawi, S. A. (2016). Standard-based science education and critical thinking. Thinking Skills and Creativity, 20, 52–62. https://doi.org/10.1016/j.tsc.2016.02.005

Hung, Y. S., & Cheng, Y. C. (2018). The impact of information complexity on audit failures from corporate fraud: Individual auditor level analysis. Asia Pacific Management Review, 23(2), 72–85. https://doi.org/10.1016/j.apmrv.2017.09.002

Kern, B. B. (2001). Structuring financial statement analysis projects to enhance critical thinking skills development. Journal of Accounting Education, 18(4), 341–353. https://doi.org/10.1016/S0748-5751(01)00005-7

Knechel, W. R. (2007). The business risk audit: Origins, obstacles and opportunities. Accounting, Organizations and Society, 32(4–5), 383–408. https://doi.org/10.1016/j.aos.2006.09.005

Manita, R., Elommal, N., Baudier, P., & Hikkerova, L. (2020). Technological Forecasting & Social Change The digital transformation of external audit and its impact on corporate governance. Technological Forecasting & Social Change, 150(December 2018), 119751. https://doi.org/10.1016/j.techfore.2019.119751

Nolder, C. J., & Kadous, K. (2018). Accounting , Organizations and Society Grounding the professional skepticism construct in mindset and attitude theory : A way forward ☆. Accounting, Organizations and Society, 67(December 2014), 1–14. https://doi.org/10.1016/j.aos.2018.03.010

Schultz, J. J., Bierstaker, J. L., & O’Donnell, E. (2010). Integrating business risk into auditor judgment about the risk of material misstatement: The influence of a strategic-systems-audit approach. Accounting, Organizations and Society, 35(2), 238–251. https://doi.org/10.1016/j.aos.2009.07.006

Stanley, T., & Marsden, S. (2013). Accountancy capstone: Enhancing integration and professional identity. Journal of Accounting Education, 31(4), 363–382. https://doi.org/10.1016/j.jaccedu.2013.08.002




DOI: https://doi.org/10.17509/tjr.v3i2.30078

Refbacks

  • There are currently no refbacks.


 Creative Commons License

The International Journal Business Review (The Jobs Review) is licensed under a Creative Commons Attribution-ShareAlike 4.0

View My Stats