New research from Texas A&M University’s Mays Business School examines how professional skepticism — a cornerstone of effective auditing — plays out in the minds and actions of auditors. The study, conducted by Emily Blum, assistant professor in Mays’ James Benjamin Department of Accounting, along with University of Alabama professor and Mays graduate Richard C. Hatfield, explores the duality in skepticism by contrasting skeptical judgment (the recognition of audit risks) and skeptical action (the steps taken to investigate or address those risks).

Auditors who are attentive to risks and maintain a questioning mindset are adept at recognizing potential problems — exhibiting strong skeptical judgment. Blum and Hatfield question whether this benefit extends to judgment follow-up: They propose that the same heightened vigilance may make taking action on those judgments harder, since that vigilance also calls attention to personal and social risks, like discomfort or fear of supervisor disapproval.

The authors conducted two studies to test their theory. The first study examined auditors’ natural tendencies towards risk attention and tolerance, while the second study experimentally induced contrasting mindsets. Across both studies, they found consistent evidence that mindsets that best facilitate skeptical judgment are not the same mindsets that best facilitate skeptical action. This supports their conclusion that for skeptical judgment, risks must be heeded, whereas for skeptical action, risks must be overcome.

These findings suggest that promoting auditor skepticism through vigilant judgment may be a double-edged sword: while doing so is important as judgment is a necessary first step, it “may also make the path from judgment to action more difficult.” By understanding this duality, practitioners and researchers can develop more targeted approaches that cultivate both components of skepticism. Because professional skepticism is foundational to high-quality audits and reliable financial reporting, these insights offer a pathway to meaningful improvements in practice. Read the full paper here.

Emily Blum
Assistant Professor
James Benjamin Department of Accounting
eblum@mays.tamu.edu