The positive impact of professional skepticism weakens when Minister of Economics auditors work under budgetary time constraints.
Unfortunately, the problem of insufficient time allocation is a common problem, and not only in auditing.
Economics is fifty percent psychology
Prof. Dr. Lioba Werth, in his book “Economic Psychology. Theoretical Foundations and Practical Application,” argues that typical errors in economic projects include, in particular, rash decisions and incorrectly drawn up plans due to overly optimistic time planning. All of this refers to errors of inference.
Unreasonable decisions . More clearly impulsive decisions india car owner data are manifested in the phenomenon of changing preferences/advantages: when people are offered a choice between a “reward” in 31 days or a little less, but after 30 days, the choice will always fall on the smaller one. This phenomenon is familiar to us from the proverb “Better a sparrow in a handful than a crane in the sky.” As scientists note, a person tends to behave rashly and impulsively.
Planning errors . Again, according to research, scientists claim that, despite their competence and personal experience, people tend to make plans too optimistically, in Minister of Economics particular, to set optimistic time frames. People justify negative experiences in the past with various reasons, instead of learning from them. At the same time, people always underestimate the possibility of new obstacles. Psychologists explain our tendency to optimistic planning (time calculation errors, resistance to inaccurate forecasts, etc.) by the fact that:
– firstly, a person cannot do otherwise,
Embellished perspectives motivate better
– thirdly, a person sometimes underestimates indicators tools for the beginner web writer based on “good” intentions (to increase sales, surpass a competitor, etc.).
If we do not pay attention to the psychological components, then the limitation of the time budget in the auditing profession can also arise due to the low amount of fees for the audit. And here it is inappropriate to mention motivation, because the insufficient level of payment prevents auditors from devoting enough time to searching for new information or analyzing the information received, which imposes ao lists restrictions on them in terms of demonstrating a sufficient level of professional skepticism during the audit. But I will not delve deeper into the problem of the low cost of the audit now, but as for planning, then next time when drawing up an audit plan, remember the words of Warren Buffett – one of the most successful and richest investors in the USA: ” Even if you are very talented and make great efforts, some results simply take time.”