THE HERMENEUTICS OF PROFESSIONAL SKEPTICISM: AN INTERPRETIVE STUDY OF AUDITORS' MEANING-MAKING PROCESS IN COMPLEX AUDIT JUDGMENTS

Abstrak

This study explores the hermeneutical dimensions of professional skepticism in auditing practice, examining how auditors in Indonesia construct meaning and exercise judgment in complex audit situations. Drawing on interpretive research methodology, we conducted in-depth interviews with 42 senior auditors from Big Four and non-Big Four firms across Jakarta, Surabaya, and Medan. Through phenomenological analysis, we unveil the interpretive processes underlying professional skepticism, revealing how auditors navigate between regulatory requirements and contextual understanding. Our findings indicate that professional skepticism emerges not merely as a technical competency but as a complex hermeneutical practice shaped by cultural, organizational, and spiritual dimensions unique to the Indonesian context. The study contributes to audit quality literature by providing a nuanced understanding of how auditors interpret ambiguous evidence, construct professional doubt, and make judgments in environments characterized by uncertainty. These insights have significant implications for audit education, practice, and regulation in emerging economies.