Professional Skepticism: An Auditor’s Superpower Against Bias (and Why We All Need It)

Professional skepticism—while it sounds like something you’d need a cape and mask for, but really, it’s about approaching audits with a questioning mind and critical eye. Think of it as the special ingredient that keeps our audits sharp, objective, and immune to the sneaky grip of cognitive bias. As auditors, we’re only human, and like anyone else, we’re wired with biases: confirmation bias, overconfidence, anchoring… the list goes on. Professional skepticism helps us stay a step ahead, questioning assumptions and digging deep.

Why Professional Skepticism Matters (Even If It’s Not Costumes and Capes)

At its core, professional skepticism is about not taking things at face value. Imagine hearing, “Trust me, the numbers look fine!” without even checking. PCAOB, IIA, ICAEW, ICAI, ACCA —they all agree that skepticism is essential, though none advocate for auditors in superhero costumes (unfortunately). Instead, they remind us that skepticism is about constantly asking questions, challenging what we see, and never assuming things are simply what they seem. The Institute of Internal Auditors (IIA), for instance, describes it as “taking nothing for granted”—perfect for a field where there can be a surprise around every corner.

Cognitive Bias: The Persistent (and Invisible) Villain

Angelina K.Y. Chin, in her publication, “Recognizing and mitigating cognitive biases: A threat to objectivity" for the IIA, has demonstrated the impact of cognitive biases in audits. It can be likened to our friendly neighbourhood biases having a way of showing up in audits, like uninvited party guests. These biases creep in when we least expect it, skewing our judgment and causing us to overlook risks. Confirmation bias has us nodding along with information that confirms our existing views, while anchoring bias can lock us into initial data or perspectives. Skepticism to the rescue! By keeping a skeptical mindset, auditors can spot these biases before they derail an audit, making us better guardians of objectivity and audit quality.

The Six Traits of Professional Skepticism (No Capes Required)

The Global Public Policy Committee (GPPC), a consortium of large accounting firms, offers six foundational characteristics of professional skepticism. These certainly count towards the armour of superpowers of an auditor:

1. Questioning Mind: Imagine Sherlock Holmes as your audit buddy—never take things at face value.
2. Suspension of Judgment: Withhold judgment until you’ve seen the full picture (or all the evidence). Think of it as holding out until you’ve watched the whole movie.
3. Search for Knowledge: Genuine curiosity—it’s a bit like having a PhD in “What’s really going on here?”
4. Interpersonal Understanding: Realize that two people might see the same thing and interpret it completely differently. Like pineapple on pizza—divisive!
5. Self-Confidence: Backing your insights, even if they’re not popular. If your findings go against the grain, hold your ground.
6. Self-Determination: When the evidence points in a direction, follow it, even if it’s a surprise twist.

Together, these traits give us the mental agility and perspective to see past biases and get to the heart of what’s going on.

Professional Skepticism: More Than Just a Technical Skill

Professional skepticism is less about technicality and more about a state of mind—a mindset that we can develop and refine. No one’s born with it; we build it up like a muscle. It takes practice, courage, and a strong dose of curiosity, but it’s entirely learnable. And it’s essential because without it, audits become checkbox exercises rather than in-depth exploration.

Embracing Professional Skepticism: A Series to Build a Skeptical Mindset

To help make this essential concept more relatable, I’ll be launching a series of short videos that break down professional skepticism into bite-sized pieces (don’t worry, no jargon overload!). As auditors, we need to elevate our human skills to tackle the complexity and biases in our work.

The first video in the series, "Introduction to Professional Skepticism", will set the stage, exploring what it means to approach audits with a skeptical mindset and how this skill can help us counter biases that affect judgment.

These videos will offer practical tips and insights to help you build skepticism as your personal superpower.

Join me in building a skeptical mindset that’s not only helpful but essential for high-quality audits. It’s time to make professional skepticism something we can all master and, dare I say, enjoy! Stay tuned for the series.

#ProfessionalSkepticism and #AuditQuality are at the core of high-impact auditing, with #CognitiveBias awareness being essential for every auditor. Developing #HumanSkills like #CriticalThinking is key to building a strong skeptical mindset. Professional bodies like #IAASB, #PCAOB, #IIA, #ICAEW, and #ICAI emphasize the importance of these qualities to safeguard #AuditProfession standards. Let’s champion #BiasMitigation, grow our #PowerSkills, and refine #AuditorSkills to drive meaningful change in our work!

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Empowering audit, risk, and compliance professionals to elevate their human skills and unlock their full potential. Each edition delivers thought-provoking insights on topics such as cognitive bias, critical thinking, active listening, professional skepticism, powerful questioning, mindset mastery, mental fitness, trust-based relationships, and effective communication. From understanding yourself and others to presenting with impact and writing compelling reports, this newsletter equips you with the tools to thrive professionally and personally. Subscribe to start evolving and transforming your career.

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About Me

I am Bhavani Jois, a passionate leader and coach who has successfully pivoted after a 25 year career in governance, risk, and internal audit.?My journey from auditor to coach has been shaped by resilience, curiosity, and a deep belief in the transformative power of coaching.

During the pandemic, I reignited my passion for coaching, leading me to fully embrace my calling and establish The Evolving Way and The Evolving Auditor.

I’m dedicated to helping individuals and teams unlock their potential, achieve lasting growth and find fulfilment in their professional and personal lives.

Join me on this journey of transformation and empowerment!