Document Type : Original Research

Authors

Department of Accounting, Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

Abstract

Professional skepticism is an integral part of successful auditing. The trait of professional skepticism has been identified in psychological research as an enduring personality trait. This study aimed to investigate the prediction of professional skepticism components based on the Big Five personality traits of auditing partners of the Iranian Association of Certified Public Accountants (IACPA). To that end, the participants consisted of 231 male auditing partners. Our research results suggest that personality traits, including extroversion, agreeableness, conscientiousness, and openness to experience, positively predict the professional skepticism components, including a search for knowledge, self-esteem, interpersonal understanding, autonomy, and a questioning mind. Neuroticism negatively predicts the professional skepticism components mentioned. Also, extroversion, agreeableness, conscientiousness, and openness to experience negatively predict suspension of judgment. Neuroticism positively predicts the suspension of judgment. These findings can aid audit firms in the recruitment procedure of auditors and assist accounting and auditing educators in guiding students in their career tracks.

Keywords

Main Subjects

COPYRIGHTS

©2022 The author(s). This is an open access article distributed under the terms of the Creative Commons Attribution (CC BY 4.0), which permits unrestricted use, distribution, and reproduction in any medium, as long as the original authors and source are cited. No permission is required from the authors or the publishers.

Agarwalla, S., N. Desai., and A. Tripathy. (2017). The impact of self-deception and professional skepticism on perceptions of ethicality. Advances in Accounting, 37: 85-93.
American Institute of Certified Public Accountants (AICPA).(2016). AICPA Code of Professional Conduct. 
American Institute of Certified Public Accountants. Auditing Standards Division. (2020). Audit Risk Alert, American Institute of Certified Public Accountants.
Andreas, A. Zarefar., and H. Rasuli. (2016). Analysis of factors affecting the auditors' professional scepticism and audit result quality-the case of Indonesian government auditors. International Journal of Applied Business and Economic Research, 14: 3807-3818.
Anisi, J. (2012). Validity and reliability of NEO five-factor inventory (NEO-FFI) on university students. International Journal of Behavioral Sciences, 5(4), 351-355.
Barrick, M. R., & Mount, M. K. (1991). The big five personality dimensions and job performance: a meta‐analysis. Personnel Psychology, 44(1), 1-26. 
Beasley, M. S., Carcello, J. V., & Hermanson, D. R. (2001). Top 10 audit deficiencies. Journal of Accountancy, 19(1), 63.
Barrick, M., M. Mount., and T. Judge. (2001). Personality and Performance at the Beginning of the New Millennium: What Do We Know and Where Do We Go Next? International Journal of Selection and Assessment, 9 (9): 9-30.
Bing, M. N., & Lounsbury, J. W. (2000). Openness and job performance in US-based Japanese manufacturing companies. Journal of Business and Psychology, 14(3), 515-522.
Boyle, E. J., Schwarzbach, H. R., & Cooper, E. A. (2016). The importance of emotional intelligence traits for auditors. International Journal of Accounting, Auditing and Performance Evaluation, 12(2), 151-166.
Bunge, M. (1991). A skeptic's beliefs and disbeliefs. New Ideas in Psychology, 9(2), 131-149.
Burch, G. S. J., & Anderson, N. (2009). Personality at work.  In P. J. Corr & G. Matthews (Eds.), The Cambridge handbook of personality psychology, (pp. 748–763). Cambridge University Press.
Brazel, J., S. Jackson., T. Schaeffer., and B. Stewart. (2016). The Outcome Effect and Professional Skepticism. The Accounting Review, 91 (6): 1577-1599.
Carver, C. S., & Connor-Smith, J. (2010). Personality and coping. The Wiley Encyclopedia of Health Psychology, 411-420.
Dimitrova, P.J., & Sorova, A. (2016). The Role of Professional Skepticism in Financial Statement Audit and Its Appropriate Application. Journal of Economics, 1(2), 1-17.
Ciołek, M. (2017). Professional skepticism in auditing and its characteristics. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, (474), 33-40.
Cobb-Clark, D. A., & Schurer, S. (2012). The stability of big-five personality traits. Economics Letters, 11-15.
Costa Jr, P. T., & McCrae, R. R. (2008). The Revised Neo Personality Inventory (neo-pi-r). Sage Publications, Inc.
Costa Jr, P. T., & McCrae, R. R. (1998). Six approaches to the explication of facet‐level traits: examples from conscientiousness. European Journal of Personality, 12(2), 117-134.
Costa, P. T., & McCrae, R. R. (1992). Normal personality assessment in clinical practice: The NEO Personality Inventory. Psychological assessment, 4(1), 5.
Crant, J. (2006). Personality and careers. Encylopedia of career development, 627-634.
De Bruin, G. P., & Rudnick, H. (2007). Examining the cheats: The role of conscientiousness and excitement seeking in academic dishonesty. South African Journal of Psychology37(1), 153-164.
Doty, J. (2011). What the PCAOB expects for the coming year and beyond. In Speech delivered at the AICPA National Conference on Current SEC and PCAOB Developments, Washington, DC, December (Vol. 5).
Farag, M. S., & Elias, R. Z. (2016). The relationship between accounting students’ personality, professional skepticism and anticipatory socialization. Accounting Education, 25(2), 124-138.
Faramarzi, M., Kashiferd, M., & SHOKRI, S. J. (2013). Comparison of some personality traits of patients with functional dyspepsia and healthy individuals.
Faramarzi, M., & Salmalian, H. (2014). Association of psychologic and nonpsychologic factors with primary dysmenorrhea. Iranian Red Crescent Medical Journal, 16(8).
Fullerton, R., & Durtschi, C. (2004). The effect of professional skepticism on the fraud detection skills of internal auditors. Available at SSRN 617062.
Glover, S. M., & Prawitt, D. F. (2014). Enhancing auditor professional skepticism: The professional skepticism continuum. Current Issues in Auditing, 8(2), P1-P10.
Gosling, S. D., Rentfrow, J. P., & Swann, B. W. (2003). A very brief measure of the Big Five Personality Domains. Journal of Research in Personality, 504-528.
Halder, S., A. Roy., and P. Chakraborty. (2010). The influence of personality traits on information seeking behaviour of students. Malaysian Journal of Library & Information Science, 15: 41-53.
Graham, K.A. (2019). Auditor Personal Characteristics and Fraud Detection Skills: The Mediating Role of Professional Scepticism (Doctoral dissertation, University Of Ghana).
Hamshari, Y. M., Ali, H. Y., & Alqam, M. A. (2021). The relationship of professional skepticism to the risks of auditing and internal control, and the discovery of fraud and core errors in the financial statements in Jordan. Academic Journal of Interdisciplinary Studies, 10(2), 105-105.
Heinström, J. (2005). Fast surfing, broad scanning and deep diving: The influence of personality and study approach on students' information " seeking behavior. Journal of Documentation, 61 (61): 228-247.
Horzum, M.B., Ayas, T., & Padır, M.A. (2017). Beş Faktör Kişilik Ölçeğinin Türk Kültürüne Uyarlanması [Adaptation of Big Five Personality Traits Scale to Turkish Culture]. Sakarya Universitesi Eğitim Fakültesi Dergisi, 7(2), 398-408.
Hussin, S., & Iskandar, T.M. (2015). Exploratory Factor Analysis on Hurtt’s Professional Skepticism Scale: A Malaysian Perspective. Asian Journal of Accounting and Governance, (4), 11-19.
Hough, L. M., Eaton, N. K., Dunnette, M. D., Kamp, J. D., & McCloy, R. A. (1990). Criterion-related validities of personality constructs and the effect of response distortion on those validities. Journal of applied psychology75(5), 581.
Hurtt, R. K. (2010). Development of a scale to measure professional skepticism. Auditing: A Journal of Practice & Theory, 29(1), 149-171.
Hurtt, R. K., Brown-Liburd, H., Earley, C. E., & Krishnamoorthy, G. (2013). Research on auditor professional skepticism: Literature synthesis and opportunities for future research. Auditing: A Journal of Practice & Theory, 32(Supplement 1), 45-97.
Hussin, S., Saleh, N. M., & Al-Smady, A. (2019). Auditor demographic factors and dimensions of auditors’ skepticism in Jordan. Asian Journal of Accounting and Governance, 11, 39-48.
Hussin, S. A. H. S., Iskandar, T. M., Saleh, N. M., & Jaffar, R. (2017). Professional Skepticism and Auditors’ Assessment of Misstatement Risks: The Moderating Effect of Experience and Time Budget Pressure.Economics & Sociology, 10(4), 225-250.
Janssen, S., Hardies, K., Vanstraelen, A., & Zehms, K. M. (2020). Professional skepticism traits and fraud brainstorming quality. Available at SSRN 3719155.
John, O. P., & Srivastava, S. (1999). The Big Five Trait taxonomy: History, measurement and theoretical perspectives. In L. A. John, Handbook of Personality: Theory and Research (pp. 102- 138). New York: Guilford Press.
Kajonius, P., & Mac Giolla, E. (2017). Personality traits across countries: Support for similarities rather than differences. PloS one, 12(6), e0179646. 
Juliana, L., Johari, R. J., Said, J., & Wondabio, L. S. (2021). The effects of tone at the top and professional skepticism on fraud risk judgment among internal auditors in Indonesia. Management & Accounting Review (MAR), 20(1), 139-154
Khalid, S., & Sekiguchi, T. (2019). The Mediating Effect of Glass Ceiling Beliefs in the Relationship between Women's Personality Traits and Their Subjective Career Success. NTU Management Review, 29(3), 193-220.
KARAHAN, A. (2022). The relationship between personality traits and professional skepticism traits. Muhasebe Bilim Dünyası Dergisi, 24(2), 261-286.
Kvasova, O. (2015). The Big Five personality traits as antecedents of ecofriendly tourist behavior. Personality and Individual Differences, (83), 111-116.
Kurtz, P. (1992). The new skepticism: Inquiry and reliable knowledge.
Larimbi, D., Subroto, B., & Rosidi, R. (2013). Pengaruh faktor-faktor personal terhadap skeptisisme profesional auditor. EKUITAS (Jurnal Ekonomi dan Keuangan), 17(1), 89–107-189–107.
Larsen, R., & Buss, D. (2017). Personality: Domains of knowledge about human nature (6the, Editions): Boston, MA: McGraw-Hill.
Linn, M., T. de Benedictis., and K. Delucchi. (1982). Adolescent Reasoning about Advertisements: Preliminary Investigations. Child Development, 53 (53): 1599-1613.
McCrae, R. R., & Costa Jr, P. T. (1997). Personality trait structure as a human universal. American Psychologist, 52(5), 509.
McCrae, R. R., & Costa, P. T. (2003). Personality in adulthood: A five-factor theory perspective. New York: Guilford Press.
Messier Jr, W. F., Kozloski, T. M., & Kochetova-Kozloski, N. (2010). An analysis of SEC and PCAOB enforcement actions against engagement quality reviewers. Auditing: A Journal of Practice & Theory, 29(2), 233-252.
Mhlanga, O. (2019). Identification of Personality Traits Affecting Entrepreneurial Performance in the Hospitality Subsector: A Five-Factor Personality Model. Acta Commercii, 19(2), 1-9.
Milfont, T.L. (2015). Socio structural and psychological foundations of climate change beliefs. New Zealand Journal of Psychology, 44(1), 17-30.
Muntada, C. I. (2013). Personality, procrastimation and cheating in students from different university degree programs. Electronic Journal of Research in Educational Psychology, 11(2), 451-472.
Nickell, E.B. (2012). An Examination of Issues Related to Professional Scepticism in Auditing Electronic Theses and Dissertations, 2477.
Nelson, M. W. (2009). A model and literature review of professional skepticism in auditing. Auditing, 28(2), 1.
Noldera, C. J., & Kadousb, K. (2018). Grounding the professional skepticism construct in mindset and attitude theory: A way forward .  Accounting, Organizations and Society67, 1-14.
Oreg, S., and N. Sverdlik. (2014). Source Personality and Persuasiveness: Big Five Predispositions to Being Persuasive and the Role of Message Involvement. Journal of Personality, 82 (82): 250-264
Parlak, Ö., & Sazkaya, M.K. (2018). Beş Faktör Kişilik Özelliklerinin İş Yaşamında Yalnızlık Üzerine Etkisinin İncelenmesi [The Investigation of the effect of Five Factor Personality on Loneliness at Work]. Ordu Üniversitesi Sosyal Bilimler Araştırmaları Dergisi, 8(1), 149-165.
Payne, E. A., & Ramsay, R. J. (2005). Fraud risk assessments and auditors’ professional skepticism. Managerial Auditing Journal.
Persellin, J., J. Schmidt., S. Vandervelde., and M. Wilkins. (2019). Auditor Perceptions of Audit Workloads, Audit Quality, and Job Satisfaction. Accounting Horizons, 33(4), 95-117
Popova, V. (2013). Exploration of skepticism, client‐specific experiences, and audit judgments. Managerial Auditing Journal.
Public Company Accounting Oversight Board (PCAOB). (2021). Second Supplemental Request for Comment: Proposed Amendments Relating to the Supervision of Audits Involving Other Auditors and Proposed Auditing Standard—Dividing Responsibility for the Audit with Another Accounting Firm. PCAOB Release No. 2021-005
Quadackers, L., Groot, T., & Wright, A. (2009). Auditors' skeptical characteristics and their relationship to skeptical judgments and decisions. Available at SSRN 1478105.
Quadackers, L. M. (2009). A study of auditors' skeptical characteristics and their relationship to skeptical judgments and decisions. Available at SSRN 1478105.
Regbiyantari, T. A., & Narsa, N. P. D. R. H. (2021). The role of anticipatory socialization as a mediating variable between the Big Five personality traits and professional skepticism. Jurnal Manajemen Teori dan Terapan, 14(1), 83-101.
Rothmann, S., & Coetzer, E. P. (2003). The big five personality dimensions and job performance. SA Journal of industrial psychology, 29(1), 68-74.
Royaee, R. A., Nezhad, A. Y., & Azinfar, K. (2013). Relationship between skepticism and decision making in the audit. World Applied Sciences Journal, 28(11), 1609-1617.
Salgado, J. F. (1997). The Five-Factor Model of personality and job performance in the European Community. Journal of applied psychology, 82(1), 30.
Samagaio, António & Felício, Teresa, (2022). "The influence of the auditor’s personality in audit quality". Journal of Business Research, Elsevier, vol. 141(C), pages 794-807.
Sanusi, Z. M., Supar, M., Iskandar, T. M., & Sari, R. N. (2010). Organizational commitment and emotional intelligence: Explaining the interaction of personality traits of auditors. In 2010. International Conference on Science and Social Research (CSSR 2010), (pp. 907-912). IEEE.
Securities, A. (2011). Investments Commission (ASIC). Policy Statements, Practice Notes.
Seibert, S. E., & Kraimer, M. L. (2001). The five-factor model of personality and career success. Journal of vocational behavior, 58(1), 1-21.
Sorova, A., & Dimitrova, J. (2016). The role of professional skepticism in financial statement audit and its appropriate application. Journal of Economics.
Soto, C. (2018). Big Five personality traits. In & JELMH Bornstein, ME Arterberry, KL Fingerman. The SAGE encyclopedia of lifespan human development.
Steel, P. (2007). The nature of procrastination: a meta-analytic and theoretical review of quintessential self-regulatory failure. Psychological bulletin133(1), 65.
Tidwell, M., and P. Sias. (2005). Personality and information seeking: Understanding how traits influence information-seeking behaviors. Journal of Business Communication, 42 (42): 51-77.
Tidwell, M., and P. Sias. (2005). Personality and information seeking: Understanding how traits influence information-seeking behaviors. Journal of Business Communication, 42 (42): 51-77.
Tkach, C., & Lyubomirsky, S. (2006). How do people pursue happiness?: Relating personality, happiness-increasing strategies, and well-being. Journal of happiness studies7(2), 183-225.
Unit, A.I. (2010). Public report on the 2008/9 inspection of PricewaterhouseCoopers LLP. Accessed in April.
Van Dijk, F. E., Mostert, J., Glennon, J., Onnink, M., Dammers, J., Vasquez, A. A., . . . Franke, B. (2017). Five-factor model personality traits relate to adult attention-deficit/hyperactivity disorder but not to their distinct neurocognitive profiles. Psychiatry Research, 258, 255-261.
Van Kuijck, B., and V. Paresi. (2020). Personality of internal auditors; an exploratory study in The Netherlands. Maandblad Voor Accountancy en Bedrijfseconomie Articles, 94 (94): 113-125.
Watson, D., & Clark, L. A. (1992). On traits and temperament: General and specific factors of emotional experience and their relation to the five‐factor model. Journal of personality60(2), 441-476.
Wilmot, M. P., Wanberg, C. R., Kammeyer-Mueller, J. D., & Ones, D. S. (2019). Extraversion advantages at work: A quantitative review and synthesis of the meta-analytic evidence. Journal of applied psychology, 104(12), 1447.
Winantyadi, N., & Waluyo, I. (2014). Pengaruh pengalaman, keahlian, situasi audit, dan etika terhadap skeptisisme profesional auditor (Studi kasus pada KAP di Provinsi Daerah Istimewa Yogyakarta). Nominal: Barometer Riset Akuntansi dan Manajemen, 3(1), 14-34.
Witt, L., Burke, L. A., Barrick, M. R., & Mount, M. K. (2002). The interactive effects of conscientiousness and agreeableness on job performance. Journal of applied psychology, 87(1), 164.
Yankova, K. (2015). The Influence of Information Order Effects and Trait Professional Skepticism on Auditors’ Belief Revisions, Springer.