CEF.UP – MaR Seminar/Webinar

Tuesday – April 29^th, 2025 | 18:30h – 20:00h | Room 631 | Online

“”Are we good? Or do we need to keep going?”: Unravelling auditors’ evidence sufficiency determinations”

Lisa Baudot – HEC Paris (France)

Abstract:

“Determining when sufficient appropriate evidence has been gathered is a critical aspect of audit judgment, with public regulators frequently citing insufficient evidence as a key deficiency in audits. Drawing on interviews with 45 auditors across firms of varying sizes and using a theoretical framework that integrates both the structured and affective dimensions of professional judgements, our study explores how auditors approach evidence sufficiency determinations. Our analysis reveals the dynamic, cyclical decision-making process auditors employ while assessing evidence sufficiency. Initially, auditors rely on established guidelines, which provide a structured approach. When these guidelines prove insufficient or mismatch the specific scenario, discomfort prompts auditors to engage in deeper evaluation. This might include revising evidence thresholds, adapting rules for evidence comparison, or forming mental models to better understand the situation alongside the collective inputs gathered throughout the process. This iterative process can either resolve the initial discomfort or lead auditors to accept some residual discomfort. As auditors navigate a variety of stopping rules and feelings of (dis) comfort, they continuously recalibrate their sufficiency determinations based on prior experiences, establishing a feedback loop that informs perceptions of comfort, and the evidence required to attain it.”