inconsistencies among assumptions, other internal data, and external conditions
(PCAOB [2010e]).4 The PCAOB generally attributes these failures
to appropriately use information in the auditors’ possession to a lack of professional
skepticism (PCAOB [2011]). However, it is unclear whether a lack
of skepticism, conflicting incentives, a lack of ability, or some other factor is
to blame (e.g., Nelson [2009], Nolder and Kadous [2014]). We view critical
thinking (i.e., a sound, fair, and relatively complete and accurate process
of analyzing, synthesizing, and evaluating evidence from relevant sources)
as a key determinant of whether auditors are able to recognize the specific
problems in their evidence, and we view this recognition as a precondition
for appropriate skeptical action.