Individual moods and Auditor’s Professional Skepticism

Authors
korosh amani 1
hashem Nikoumaram 2
bahman banimahd 3
1 Ph.D Student of Accounting , Department of Accounting, Islamic Azad University, Tehran Science and Research Branch , Tehran(kouroshamani@yahoo.com)
2 Professor of Accounting , Department of Accounting, Islamic Azad University, Tehran Science and Research Branch ,Tehran(Corresponding Author)
3 Associate Professor of Accounting , Department of Accounting, Islamic Azad University, Karaj Branch, Karaj,(dr.banimahd@gmail.com)
10.29252/aapc.5.9.35
Abstract
Professional skepticism is a basic concept in audit decision-making and judgment and a lack of it may decrease audit quality. Recently, the subject of professional skepticism has been noticed by the audit scholars. Recent empirical studies have showed that auditor’s judgment and decision making would rise from behavioral and recognition subjects. Hence, the aim of this paper is to study the effect of positive and negative moods on auditor’s professional skepticism as an element of the auditor’s judgment and decision making. This research is functional from study objective point of view and is a survey from methodology point of view. The theoretical framework and literature review is collected through archival approach. Data collection is based on questionnaire. The statistical sample are 107 auditors who are working in audit firms and time of research conduct is 2017. We use multiple regression to analysis of the research data.

The result of this study show that, there is a positive and significant relationship between the positive mood and professional skepticism. Also the relationship between negative mood and professional is negative and significant.
Keywords
professional skepticism
Judgment and Decision Making and Positive and Negative Mood
ACCA.2017. Banishing Bias? Audit Objectivity, and the Value of professional Scepticism. Available at: http://www.accaglobal.com/content/dam/ACCA_Global/Technical/audit/pi-banishing-bias-prof-scepticism.pdf
آذین فر، کاوه؛ رویایی، رمضانعلی و یعقوب نژاد، احمد. (1393)، ارتباط بین تردید حرفه ای و قضاوت حرفه ای حسابرسان مستقل، پژوهش های حسابداری مالی و حسابرسی، شماره 22، صص 67 -95.
Aschauer,E., M. Fink, A. Moro, K.Van Bakel-Auer, and B.Warming-Rasmussen. 2017. Trust and Professional Skepticism in the Relationship between Auditors and Clients: Overcoming the Dichotomy Myth. Behavioral Research in Accounting.29(1):19-42.
تحریری آرش و پیری سقرلو، مهدی. (1395)، درک حسابرسان از مفهوم تردید حرفه ای در کار حسابرسی، مجله بررسی های حسابداری و حسابرسی، شماره 1، دوره 23، صص 117- 135.
Bagley, P. L. 2010. Negative affect: A consequence of multiple accountabilities in auditing. Auditing. Journal of Practice & Theory 29 (2): 141–157.
حاجیها، زهره؛ گودرزی، احمد و فتاحی، زهرا. (1392)، ارتباط ویژگی های تردید حرفه ای حسابرسان و قضاوت و تصمیم گیری آنها، مجله حسابداری مدیریت، شماره 19، صص 43 - .59
Chiang,C.2016.Conceptualising the linkage between professional scepticism and auditor independence. Pacific Accounting Review, 28(2):180-200
حسینی، سید حسین، نیکومرام، هاشم و رضایی علی اکبر. (1394)، تبیین مولفه های تأثیرگذار بر تردید حرفهای حسابرسان با تکیه بر ابعاد فردی، مجله علمی و پژوهشی حسابداری مدیریت، شماره 25 صص 13- 27 .
Chung, J., J. R. Cohen, and G. S Monroe.2015. The Influence of a Self-Interest Threat to Auditor Independence and Emotion on Auditors’ Inventory Valuation Judgments. Available at SSRN: https://ssrn.com/abstract=2557630
دلاور، علی.(1380) روش تحقیق در روان شناسی و علوم تربیتی، نشر ویرایش
Cianci, A. M., and J. L. Bierstaker. 2009. The impact of positive and negative mood on the hypothesis generation and ethical judgments of auditors. Journal of Practice & Theory 28 (2): 119–144.
رفاهی بخش، سمانه؛ رهنمای رودپشتی، فریدون و بنی مهد بهمن. (1397)، رابطه میان عواطف فردی و مدیریت سود: آزمون نظریه روشناسی مثبت گرا، مجله فصلنامه دستاوردهای حسابداری ارزشی و رفتاری، دوره سوم، شماره ششم، صص۲۴۱-۲۵۳.
Farag. M.S, and R.Z. Elias. 2016. The relationship between accounting students’ personality, professional skepticism and anticipatory socialization, Accounting Education.25(2):124-138
سعیدی گراغانی، مسلم و ناصری، احمد. (1396)، تاثیر تیپ شخصیتی بر قضاوت حرفه ای حسابرس در تخصیص بودجه زمانی به حسابهای حاوی برآورد، دو فصلنامه حسابداری ارزشی و رفتاری، سال دوم شماره سوم، صص 169-184.
Favere-Marchesi.A., and C.Emby.2017. The Alumni Effect & Professional Skepticism: An Experimental Investigation. Accounting Horizons In-Press. https://doi.org/10.2308/acch-51920
Forgas, J. P. 1995. Mood and judgment: The affect infusion model (AIM). Psychological Bulletin, 117(1): 39-66.
Forgas, J. P. and J. M. George .2001. Affective Influences on Judgments and Behavior in Organizations: An Information Processing Perspective, Organizational Behavior and Human Decision Processes 86(1): 3–34.
Franken, I. H. A., and P.Muris.2005. Individual differences in decision-making. Personality and Individual Differences, 39(1):991–998
Glover, S. M and D.F.Prawitt. 2014. Practitioner summary: Enhancing auditor professional skepticism: The professional skepticism continuum. Current Issues in Auditing, 8(2): 1-10.
Griffith, E. E., J. S.Hammersley, K.Kadous, and D.Young. 2015. Auditor mindsets and audits of complex estimates. Journal of Accounting Research, 53(1): 49-77.
Hammersley, J.S.2011.A review and model of auditor judgments in fraud-related planning tasks. Auditing: A Journal of Practice & Theory. 30(4):101-128
Hurtt, R. K. 2010. Development of a Scale to Measure Professional Skepticism. Auditing: A Journal of Practice & Theory 29(1): 149-171
Isen, A.M., Shalker, T., Clark, M., & Karp, L. (1978), "Affect, accessibility of material in memory and behavior: A cognitive loop? Journal of Personality and Social Psychology, 36, 1-12.
Koch.C, A.Köhler, and K.Yankova. 2016. Professional Skepticism and Auditor Judgment: Does Trait Skepticism mitigate the recency bias? Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2880653
Kunda, Z. 2002. Social cognition: making sense of people. Cambridge, MA: MIT Press.
Lerner, J. S., and L. Z. Tiedens. 2006. Portrait of the angry decision maker: How appraisal tendencies shape anger's influence on cognition. Journal of Behavioral Decision Making, 19(2): 115-137.
Lindebaum, D.2013. Does emotional intelligence moderate the relationship between mental health and job performance? An exploratory study, European Management Journal31(3): 538-548
McKnight, C.A.,and W.F. Wright. 2011.Characteristics of relatively high-performance auditors. Auditing: A Journal of Practice & Theory.30(2):. 191-206.
Nelson, Mark W.2009. Model and Literature Review of Professional Skepticism in Auditing Auditing: A Journal of Practice & Theory. 28(2): 1-34.
Peytcheva., M.2014. Professional skepticism and auditor cognitive performance in a hypothesis-testing task, Managerial Auditing Journal .291(1):.27-49.
Schwarz, N. 2004. Meta-cognitive experiences in consumer judgment and decision making. Journal of Consumer Psychology. 14(3):332-348.
Thompson, M.M., M.E.Naccarato, K.C.H.Parker, and G.B. Moskowitz.2001. The personal need for structure and personal fear of invalidity measures: Historical perspectives, current applications, and future directions. In G. B. Moskowitz (Ed.), Cognitive social psychology: The Princeton symposium on the legacy and future of social cognition.12(3):19-39.
Watson, D., Clark, L. A., and A.Tellegen 1988. Development and validation of brief measures of positive and negative affect: The PANAS scales. Journal of Personality and Social Psychology. 54(6): 1063–1070.
Wegener, D. T., and R. E. Petty. 1994. Mood management across affective states: The hedonic contingency hypothesis. Journal of Personality and Social Psychology 66 (6): 1034–1048
Yan,H., and S.Xie. 2016. How does auditors’ work stress affect audit quality?Empirical evidence from the Chinese stock market. China Journal of Accounting Research 9(4):305–319.
Value and Behavioral Accounting
Volume 5, Issue 9
Summer 2020
Pages 35-53