Current Volume 8
Abstract
In the evolving landscape of financial reporting and accountability, the role of auditors in ensuring the integrity of financial statements remains critical. However, despite technological advancements and regulatory reforms, audit failures persist, often linked to lapses in auditor judgment and professional skepticism. This systematic review explores how behavioral insights—particularly cognitive biases—influence auditor decision-making and examines targeted interventions designed to enhance skepticism and audit quality. Drawing on literature from behavioral accounting, psychology, and organizational behavior, the review identifies key cognitive biases such as confirmation bias, anchoring, overconfidence, and the halo effect, which impair objective judgment during audit engagements. These biases can lead auditors to selectively seek evidence that supports client-preferred positions or rely excessively on initial assessments, thereby undermining audit effectiveness. The review synthesizes empirical evidence from peer-reviewed studies published between 2000 and 2021, using the PRISMA method to ensure methodological rigor and transparency. It highlights behavioral interventions including structured decision aids, accountability mechanisms, mindfulness training, and debiasing prompts as promising strategies for mitigating judgment distortions. Notably, the incorporation of counterfactual reasoning tasks, professional skepticism training, and team-based review protocols show consistent efficacy in enhancing critical thinking and skepticism among auditors. Moreover, the review underscores the importance of audit firm culture and leadership in reinforcing skeptical behavior. Interventions are more effective when aligned with organizational norms that prioritize independence, ethical conduct, and reflective thinking. The findings advocate for a paradigm shift in audit training and practice—moving beyond technical competence to include behavioral competence as a core component of auditor development. This study offers actionable recommendations for audit firms, regulators, and educators, calling for the integration of behavioral science into audit methodology, professional standards, and continuing education programs. By bridging behavioral theory and audit practice, this review provides a foundational framework for improving auditor judgment and sustaining trust in financial reporting.
Keywords
Auditor Judgment, Professional Skepticism, Cognitive Bias, Behavioral Insights, Audit Quality.
Citations
IRE Journals:
Oluwatosin Ilori , Comfort Iyabode Lawal , Solomon Christopher Friday , Ngozi Joan Isibor , Ezinne C. Chukwuma- Eke
"Enhancing Auditor Judgment and Skepticism through Behavioral Insights: A Systematic Review" Iconic Research And Engineering Journals Volume 4 Issue 11 2021 Page 357-373
IEEE:
Oluwatosin Ilori , Comfort Iyabode Lawal , Solomon Christopher Friday , Ngozi Joan Isibor , Ezinne C. Chukwuma- Eke
"Enhancing Auditor Judgment and Skepticism through Behavioral Insights: A Systematic Review" Iconic Research And Engineering Journals, 4(11)
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IRE Journals is an open access online journals established with an aim to publish high quality of research work in various diciplines. We have more than 6 years in publications. Over 2500+ papers already published.
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