The Hubbard Award: Brandi Pritchard, CFE

The Hubbard Award is named after the late ACFE Regent Emeritus and professor of accountancy at the University of Nebraska, Dr. Thomas Hubbard. The award is given for an outstanding work published in Fraud Magazine during the past year.

The winning article this year was called “Calibrate your professional skepticism” by Brandi Pritchard, CFE. Congratulations Brandi!

Below is an excerpt from the winning article.

Professional skepticism is an attitude that includes a questioning mind and a critical assessment of audit evidence. This mindset is a foundational principle for all investigators, especially fraud examiners. (Professional skepticism is included in the ACFE Code of Professional Standards.)

But applying the right level of skepticism can be challenging. Eager investigators might be too skeptical, which could result in extra or unnecessary audit procedures, time spent and audit costs. Others might be too trusting or averse to conflict and ignore red flags that warrant further attention.

Think of professional skepticism like a scale — we should calibrate sensitivity based on what it’s measuring. Weighing gold requires fine calibration and heightened sensitivity to even the smallest change in quantity. Similarly, when an audit or fraud examination client has a poor control structure, a concerning tone at the top or other red flags, investigators should calibrate their skepticism accordingly. They should be more sensitive to smaller errors or inconsistencies, and should require additional evidence to satisfy audit questions. In Washington, then-Assistant State Auditor Christina Solis did just that.