Quotation Aschauer, Ewald, Fink, Matthias, Moro, Andrea , van Bakel-Auer, Katharina, Warming-Rasmussen, Bent. 2017. Trust and Professional Skepticism in the Relationship between Auditrors and Clients: Overcoming the Dichotomy Myth. Behavioral Research in Accounting 29 (1), 19-42.


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Abstract

This study empirically investigates the relationship between auditors' identification-based trust in client firms' managers (CEOs/CFOs) and their perceptions of auditors' professional skepticism. We employ a multimethod approach broken down into two studies. First, in Study 1, we approached auditors and clients using narrative interviews in order to identify the working definitions of interpersonal trust and professional skepticism and also to develop an empirical and testable hypothesis against the backdrop of the current literature. Second, in Study 2, an ordinary least squares regression based on data collected from 233 real auditor-client dyads in Germany reveals that auditors' identification-based trust is positively associated with their clients' perception of the auditors' professional skepticism. The identified coexistence of trust and professional skepticism in auditor-client dyads implies that regulatory measures that impede the evolution of trust between auditors and their clients will fail to enhance professional skepticism. Instead, regulations should give auditors and their clients sufficient leeway to establish identification-based trust.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Behavioral Research in Accounting
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, WH-B
Language English
Title Trust and Professional Skepticism in the Relationship between Auditrors and Clients: Overcoming the Dichotomy Myth
Volume 29
Number 1
Year 2017
Page from 19
Page to 42
Reviewed? Y
DOI http://dx.doi.org/10.2308/bria-51654

Associations

People
van Bakel-Auer, Katharina (Details)
External
Aschauer, Ewald (Johannes Kepler University, Austria)
Fink, Matthias (Johannes Kepler University, Anglia Ruskin University, Austria)
Moro, Andrea (Cranfield University, United Kingdom)
Warming-Rasmussen, Bent (University of Southern Denmark, Denmark)
Organization
Finance, Accounting and Statistics DP (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5327 Accounting (Details)
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