Abstract

CILLIERS, Sonja. Emotional intelligence as a key driver of the formation of professional scepticism in auditors. SAJBM [online]. 2023, vol.54, n.1, pp.1-15. ISSN 2078-5976.  http://dx.doi.org/10.4102/sajbm.v54i1.3654.

PURPOSE: Litigation against auditors has augmented as the number of corporate failures increased over the past decades. A failure to exercise professional scepticism has been cited as one of the main contributing factors to audit failure. This research establishes a link between professional scepticism and emotional intelligence (EI). Credence is given to the design of interventions promoting the development of auditor EI with the view of combating the incidence of audit failure DESIGN/METHODOLOGY/APPROACH: A sample of United States (US) judicial opinions was examined where professional scepticism of auditors was considered. A dual coding system was applied where process elements of professional scepticism and components of emotional intelligence were identified and linked FINDINGS/RESULTS: A significant overlap between elements of professional scepticism and facets of emotional intelligence was indicated, especially those of self-assessment, conscientiousness, organisational awareness, communication skills, leadership and managing influence PRACTICAL IMPLICATIONS: Emotional intelligence competencies become part of the resources available to the auditor, which may be used to exercise their professional scepticism. Interventions designed to enhance auditor emotional intelligence may positively impact the levels of professional scepticism demonstrated, ultimately aiding in lowering the incidence of audit failure ORIGINALITY/VALUE: This research offers a new process perspective of professional scepticism which has been adapted from the works of seminal authors in the field. Using the data sample, the incidences of overlap between emotional intelligence and the process steps of professional scepticism are identified and categorised within this framework. This research contributes to the body of empirical research on emotional intelligence in the auditing field

Keywords : professional scepticism; auditor emotional intelligence; audit failure; auditor behaviour; auditor performance; auditor communication; auditor independence; corporate failure.

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