DOES EXPERIENCE AFFECT AUDITORS’ PROFESSIONAL JUDGMENT? EVIDENCE FROM PUERTO RICO

Auditors use professional judgment to collect and evaluate evidence to issue an opinion on the fairness of a business entity’s financial statements. Prior research finds that international auditing firms should consider cultural aspects when planning an audit examination and that the experience and knowledge possessed by an auditor influences the decision-making processes in an audit. This paper examines whether experience could affect the professional judgment of auditors during the planning phase of an audit. The investigation consists of a survey made among auditors working in audit and accounting firms, Independent Practitioners, and university senior students majoring in accounting to determine if the years of work experience of an auditor influences the evaluation of the internal control environment and the assessment of fraud risk for a firm operating in different countries with different cultural characteristics. The results obtained suggest that experience does not seem to affect their decisions when they are based on professional judgment.