@article{cc41ac789e7f4b188fb4354491a778d4,
title = "The outcome effect and professional skepticism: A replication and a failed attempt at mitigation",
abstract = "In this research note, we replicate Brazel, Jackson, Schaefer, and Stewart{\textquoteright}s (2016) study of how auditors evaluate skeptical behavior. Like the original study, we find that evaluators reward audit staff who exercise appropriate levels of skepticism and identify a misstatement (positive outcome). However, when no misstatement is identified (negative outcome), evaluators penalize staff who exercise appropriate levels of skepticism. One factor causing this outcome effect may be that exercising skepticism typically causes budget overages due to additional testing. Hence, we examine whether formally attributing the budget overage to skeptical judgments and actions in the audit budget file reduces outcome effects. However, while replicating the initial effect across three separate studies, we have been unable to reduce this effect. Thus, it is clear that the outcome effect in this context is very robust.",
keywords = "Audit, Budget, Evaluation, Outcome effect, Professional skepticism, Replication",
author = "Brazel, {Joseph F.} and Christine Gimbar and Maksymov, {Eldar M.} and Schaefer, {Tammie J.}",
note = "Funding Information: 11 Note also that the current study was supported by grants from the Center for Audit Quality{\textquoteright}s Access to Audit Personnel program and the Institute for Fraud Prevention. Funding Information: We thank Steve Salterio (senior editor), an anonymous reviewer, Scott Fleming, Kathleen Linn, Tim Louwers, Dick Riley, Scott Showalter, representatives from the Center for Audit Quality (CAQ), and workshop participants at the 2016 and 2017 Fall Meetings of the Institute for Fraud Prevention (IFP) for many helpful comments. This research was supported by grants from the CAQ{\textquoteright}s Access to Audit Personnel program and the IFP. All results, interpretations, and conclusions expressed are those of the authors alone, and do not necessarily represent the views of the CAQ or the IFP. We thank the audit professionals who participated in our experiment. Publisher Copyright: {\textcopyright} 2019, American Accounting Association. All rights reserved.",
year = "2019",
month = sep,
day = "1",
doi = "10.2308/bria-52306",
language = "English (US)",
volume = "31",
pages = "135--143",
journal = "Behavioral Research in Accounting",
issn = "1050-4753",
publisher = "American Accounting Association",
number = "2",
}