Conceptualizing Auditors' Cognitive Heterogeneity: and Analyzing Its Role in Auditor Professional Skepticism

Document Type : Research Paper

Authors

1 Ph.D. Student Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran.

2 Associate Professor Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran

3 Associate Professor Department of accounting, BG.C., Islamic Azad University, Bandargaz, Iran

4 Assistant Professor Department of Accounting, Kas.C., Islamic Azad University, Kashan, Iran

Abstract

Amid the inherent ambiguities and complexities of professional decision-making, cognitive dissonance in auditors' judgments distorts perceptions of financial realities. This study explores the hidden layers of cognition and the impact on the auditing profession. It presents a model of auditors’ cognitive dissonance and examines its role in fostering professional skepticism. Employing both qualitative and quantitative methods tailored to data collection needs, the study identifies components of auditors’ cognitive dissonance through content analysis and expert interviews informed by researcher-developed questionnaires. Professional skepticism was assessed via a standardized questionnaire. Additionally, structural equation modeling via partial least squares (PLS-SEM) tested the research hypotheses. The findings uncovered a thematic hierarchy comprising three overarching themes: conflict in cognitive values, heterogeneity in structural mechanisms, and inhibitory individual mechanisms; seven organizing themes; and 31 basic themes, which dynamically interact to form a comprehensive pattern of cognitive dissonance in the auditing profession. The quantitative results further revealed that auditors' cognitive dissonance exerts a negative and significant influence on professional skepticism. These findings offer pathways to improving audit processes, reducing judgment errors, and enhancing financial reporting quality. Thus, this study stands as an inspiring and practical reference for researchers, auditors, and standard setters.

Keywords

Main Subjects

References

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Journal of Accounting Advances
Volume 17, Issue 2
February 2025
Pages 81-123

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History

  • Receive Date: 12 July 2025
  • Revise Date: 19 September 2025
  • Accept Date: 27 September 2025

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