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Factors Influencing Auditors’ Professional Scepticism in Financial Statement Audits: A Theoretical Review, Empirical Synthesis, and Conceptual Framework for the Audit Market in Hanoi

Ngo Thi Kieu Trang

Abstract

Professional skepticism is universally recognized as the cornerstone of financial statement audits, directly governing an external auditor’s cognitive ability to recognize anomalies, evaluate contradictory evidence, and detect material misstatements arising from error or deliberate corporate fraud. Despite its formal codification in International Standards on Auditing and Vietnamese Standards on Auditing, skepticism remains an elusive behavioral construct in practice, frequently undermined by cognitive heuristics, environmental stressors, commercial conflicts of interest, and socio-cultural hierarchies. This paper presents an extensive, multi-layered literature review systematically grounded in foundational theoretical paradigms—specifically, Hurtt’s Trait-Based Model, Nelson’s State Determinants Model, Ajzen’s Theory of Planned Behavior, Role Stress Theory, and Agency Theory. Building upon this theoretical architecture, the paper synthesizes global and domestic empirical evidence across four primary determinant clusters: individual auditor attributes, internal audit firm quality controls and leadership, workload and budgetary pressures, and client-specific characteristics and corporate governance. Furthermore, this study bridges an acute research gap by situating these determinants within the institutional, commercial, and socio-cultural idiosyncrasies of Hanoi’s audit market—characterized by profound hierarchical deference, deep-seated informal relational networks, severe busy-season calendar compression, and stark operational disparities between international Big 4 networks and domestic non-Big 4 practices. Finally, this paper proposes an integrative conceptual framework comprising six testable propositions and delineates an empirical methodological roadmap to guide forthcoming inquiries and assist audit practitioners, regulatory bodies, and standard-setters in safeguarding audit quality and restoring capital market credibility.

Keywords

Professional skepticismExternal auditorFinancial statement auditLiterature reviewConceptual frameworkAudit qualityHanoi audit marketEmerging markets.

References

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