Impact of Auditors’ Industry Specialization and Longevity on Professional Skepticism

Abstract

As a result of financial scandals, such as GE Co. and AIG, professional skepticism received increased significance in the field of auditing. Grounded in Hurtt’ s professional skepticism framework, this quantitative correlational study aimed to examine the relationship between years of auditor experience, the extent of industry specialization of the auditor, and the variation in the level of professional skepticism. The study included data from 68 U.S. accountants and auditors. The results of the multiple regression model showed that at F(2, 65) = 4.414, p = 0.016, R2 = 0.12, auditor’s industry specialization was a significant factor, which is positively associated with professional skepticism. Auditor’s industry specialization was statistically significant (ß= .316, t = 2.704, p = .009), accounting for a higher contribution to the model. Auditor’s longevity in the field was not statistically significant, thus, did not explain any significant variance in the performance of professional skepticism. The results of this study extended research on professional skepticism attributes and expanded our understanding of predictive variables.