A1 Journal article (refereed)
Auditors’ perceptions of alternative performance measures : alternative truths and professional skepticism (2024)
Rautiainen, A., Saastamoinen, J., & Pajunen, K. (2024). Auditors’ perceptions of alternative performance measures : alternative truths and professional skepticism. Accounting in Europe, 21(2), 134-153. https://doi.org/10.1080/17449480.2023.2244509
JYU authors or editors
Publication details
All authors or editors: Rautiainen, Antti; Saastamoinen, Jani; Pajunen, Kati
Journal or series: Accounting in Europe
ISSN: 1744-9480
eISSN: 1744-9499
Publication year: 2024
Publication date: 13/08/2023
Volume: 21
Issue number: 2
Pages range: 134-153
Publisher: Routledge
Publication country: United Kingdom
Publication language: English
DOI: https://doi.org/10.1080/17449480.2023.2244509
Publication open access: Openly available
Publication channel open access: Partially open access channel
Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/91772
Abstract
Alternative performance measures (APMs) may increase uncertainty and perceived risks concerning the audit, and rouse the auditor’s professional skepticism (PS), for example in case the APMs and official reporting diverge (e.g. one shows a profit and the other a loss). In this paper, using a survey of Finnish certified public auditors (N = 220), we study how auditors perceive relationships between audit work, PS, and APMs. When examining PS, we use both personal ‘trait skepticism’ and case-specific ‘state skepticism’. Our results show that state skepticism related to APMs can explain skeptical behavior and that it is a separate component from trait skepticism. Both state skepticism and considerations of the usefulness of APMs are helpful in assessing audit evidence and accounting figures. Further, we find that auditors hold various views of APMs and that ‘search for knowledge’ and ‘questioning mind’ are key dimensions of PS in coping with APMs.
Keywords: skepticism; audit of the accounts; auditors (accountants); bookkeeping; reporting
Free keywords: professional skepticism; state skepticism; alternative performance measurement; audit
Contributing organizations
Ministry reporting: Yes
VIRTA submission year: 2023
JUFO rating: 1
