MEDIATING EFFECT OF PROFESSIONAL SKEPTICISM ON THE RELATIONSHIP BETWEEN PROFESSIONAL ETHICS AND AUDIT QUALITY
Journal Title: Gusau Journal of Accounting and Finance - Year 2020, Vol 1, Issue 2
Abstract
This study assesses the mediating effects of professional skepticism on the relationship between professional ethics and audit quality. One hundred and seven (107) auditors out of one hundred and sixty (160) were selected as sample for the study. Data was collected from primary sources where a questionnaire was administered to the sample selected. PLS path model was used in analysing the data. The findings revealed a direct effect relationship between the variables with significant and positive relationship between professional ethics and auditor’s skeptiscism, audit quality as well as professional ethics and audit quality. It further reveals an indirect effect relationship between professional ethics and audit quality with professional skepticism as a mediator. The study concluded that Professional ethics enhances auditor’s skepticism to produce quality audit work; adhering to the principles of professional ethics is necessary for improving the skeptical attitude of an auditor so as to have a high quality audit work. The study recommends that the regulators and standard setters should strictly enforce and continue to emphasize the importance of applying professional skepticism in auditing and auditors should have adequate knowledge of professional ethics and comply fully with them so as to improve their skeptical attitude. Finally, the Accountancy firms should ensure monitoring of their auditors in order to make them apply professional skepticism during audit engagement.
Authors and Affiliations
Muhammad Aminu Isa, Ali Ciroma Abdullahi, Usman Muhammad Adam
Keywords
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