Description
This study examines the complex interrelation between interpersonal trust (IPT) and professional skepticism (PS) in the context of the auditor–client relationship. Despite the recognized importance of IPT, its definition has been subject to various interpretations, making it challenging for regulators to establish adequate measures. IPT is a double-edged sword in the context of financial statement audits, as it can positively affect the relationship but can also pose a threat to PS and audit quality. Existing audit research on the interrelation between IPT and PS has yielded inconsistent results. Whereas some studies suggest that PS is a form of distrust (DT), opposing IPT, others imply their possible coexistence. Against this backdrop, this study aims to explore the interrelation of IPT, PS, and DT in the negotiation cycle, including conflict situations, using semi-structured interviews. The study finds that IPT and PS can coexist throughout the negotiation cycle. The results suggest that PS is a neutral concept, indicating that auditors can maintain a level of skepticism without undermining the relationship. By introducing the concept of DT, this study provides valuable insights into the complex interplay between these concepts in the auditor–client relationship. The findings have significant implications for auditors and clients, highlighting the importance of balancing trust and skepticism to maintain healthy working relationships while ensuring audit quality. Overall, this study contributes to the existing literature by providing a comprehensive analysis of the interrelationship between IPT, PS, and DT, with a specific focus on the negotiation cycle.| Period | 24 Jun 2022 |
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| Event title | The Ninth International Conference of the Journal of International Accounting Research |
| Event type | Unknown |
| Degree of Recognition | International |