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Narcissism Dynamics and Auditor Skepticism

Author

Listed:
  • Steven E. Kaszak

    (University of North Carolina Wilmington)

  • Eric N. Johnson

    (University of Wyoming)

  • Philip M. J. Reckers

    (Arizona State University)

  • Alan Reinstein

    (Wayne State University)

Abstract

The process by which auditors consider fraud risk in assessing management’s motivation and character remains under-addressed. This is problematic given the rising tide of narcissism, as well as recent research documenting that both self- and other-perceptions of narcissism influence an array of judgments. While a skeptical attitude is fundamental to the auditor’s gatekeeper role, it remains unclear how auditors form and act on perceptions of client narcissism. With a large sample of experienced accountants as participants, we leverage insights from current narcissism and perceiver effects research to predict (and find) that auditor skepticism responds in a divergent manner to both the auditor’s (1) own antagonistic versus agentic narcissism and (2) perceptions of the client’s antagonistic and agentic narcissism. We discuss the observed opposing behavioral externalities related to these distinct forms of grandiose narcissism, particularly in dynamic interactions between clients and auditors.

Suggested Citation

  • Steven E. Kaszak & Eric N. Johnson & Philip M. J. Reckers & Alan Reinstein, 2025. "Narcissism Dynamics and Auditor Skepticism," Journal of Business Ethics, Springer, vol. 197(1), pages 99-116, February.
    • Handle: RePEc:kap:jbuset:v:197:y:2025:i:1:d:10.1007_s10551-024-05668-1
    DOI: 10.1007/s10551-024-05668-1
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    References listed on IDEAS

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