Masterclass – How Can We Improve the Application of Professional Skepticism on Today’s Audits?

When performing your audit work, do you sometimes notice evidence inconsistencies that may rise to the level of a fraud red flag? Applying professional skepticism you decide to investigate the red flag. Ever wonder if your supervisor’s evaluation of your skepticism is based more on the outcome of your investigation than many other important factors? What happens when supervisors start to reward appropriate applications of skepticism, regardless of the outcome? Who are the audit seniors and managers who are already effectively evaluating staff when they are skeptical? What types of support can audit committees provide to audit engagement teams? Can support, like intervening when tensions rise with management, insulate the audit team from the costs of applying professional skepticism? What happens to the skepticism of audit staff when the audit committee’s support is conveyed in detail to the entire audit team? Does it matter if the audit partner conveys the support, or is best when it comes directly from the audit committee chair? In this masterclass held by Joe Brazel, he will present the most important findings of two of his research studies and discuss what the findings mean for audit practice. Joe has extensive experience in presenting his research to audit professionals. He is also a regular contributor at Forbes.com, where he conveys academic research studies to the business community. Join this masterclass and explore how you can leverage these research findings to promote audit quality! After the presentation of each of the two studies, we will have a break-out activity in which you will share your own experiences with other audit professionals, reflect on the practical implications of the research findings, and discuss related issues that future research should address. Then, we will reconvene to discuss your break-out activity insights as a group. The masterclass will be followed by drinks. This masterclass is relevant for audit professionals at all levels of large and small firms who are interested in the topics of professional skepticism, fraud red flags, performance evaluation, audit committees, and audit team dynamics.