The Effect of Audit Management by Managers on Detection of Misstatements by Auditors Considering Professional Skepticism of Auditors

Although as it is expected that auditors possess sufficient efficiency, but evidences show that they are managed by auditors. However, auditor professional skepticism can act as an interferer factor that reduces the audit management. This research investigates whether manager are successful in audit management or not, and what is the effect of professional skepticism of auditors in their efficiency and audit management. For this purpose a case of financial statements containing misstatements and a questionnaire measuring audit professional skepticism, has been designed and was given to auditors. The results show that managers are successful in audit management and diverting auditors to accounts that contain misstatements cannot affect their efficiency and ability to detect misstatements. Also, auditors professional skepticism does not affect detecting misstatements and diverting auditors has not made them more sensitive and skeptical, in order to increase their investigations and detect the misstatement and errors in other parts of financial statements.