Analyzing Auditing Deficiencies Through a Professional Judgment Lens

Posted: 17 Jan 2024 Last revised: 1 Mar 2024

See all articles by Fuxi Kang

Fuxi Kang

Northeastern University

Christine J. Nolder

Suffolk University

Daniel Sunderland

Northeastern University

Date Written: February 29, 2024

Abstract

Public company audits serve the public interest as they enhance the credibility of financial statements for participants in the capital markets. Doing so necessitates that market participants rely on the reasonableness of auditors’ professional judgments. Our research proposes a systematic approach for researchers to identify areas where auditors’ professional judgments warrant interventions aimed at improving future professional judgments. To that end, we analyze 271 auditing deficiencies through a professional judgment lens to identify which stage of the professional judgment processes most likely fell short in each case. Our findings offer insights to academics regarding where to focus future research efforts aimed at improving auditors’ professional judgments throughout the audit.

Keywords: Professional judgment, auditing deficiencies, cognitive processing

Suggested Citation

Kang, Fuxi and Nolder, Christine J. and Sunderland, Daniel, Analyzing Auditing Deficiencies Through a Professional Judgment Lens (February 29, 2024). Available at SSRN: https://ssrn.com/abstract=4686193 or http://dx.doi.org/10.2139/ssrn.4686193

Fuxi Kang

Northeastern University ( email )

Boston, MA 02115
United States

Christine J. Nolder (Contact Author)

Suffolk University ( email )

Boston, MA 02108
United States

Daniel Sunderland

Northeastern University ( email )

220 B RP
Boston, MA 02115
United States

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