Can Audit Firm Policies Alter Juror Reactions to Auditor Professional Skepticism?

Principal Investigator: Joe Brazel

Sponsor: Institute for Fraud Prevention

Award Period: 7/1/2017 - 8/31/2019

Amount: $15,000

Description: This study explores whether audit firm policies requiring a specific level of professional skepticism in high-risk areas could provide an auditor-effort baseline for jurors that would safeguard auditors against liability, even if they fail to detect a material misstatement. We are investigating whether higher professional skepticism is more effective in reducing auditor’s liability when the higher skepticism was required by the firm policy (vs. not required by the firm policy).