This paper draws on the social control and sensemaking literatures to study how a Big 4 audit firm in the Netherlands sought to contest the national oversight body's inspection findings on one of its audit engagements. Our case study leads us to develop the concept of professional ambiguity to capture the multiple, coexisting meanings and interpretations of audit evidence and professional judgment inherent in audit work. We show how professional ambiguity creates a space for discursive struggles between auditors and inspectors, enabling audit firms to engage in strategic sensemaking aimed at contesting looming inspection findings. In our case, this process entailed the mobilization of senior firm actors who reinterpreted the focal engagement as broadly acceptable—or “good enough.” Yet, when enacting this pragmatic reframing, the firm ultimately failed to overturn the oversight body's findings. Despite this outcome, we argue that audit firms seek to mobilize professional ambiguity and engage in strategic sensemaking to reshape oversight bodies' interpretations of audit engagements in inspection processes.

As the use of audit data analytic tests (ADA) becomes increasingly established in practice, auditors will often confront situations in which they inherit ADA developed by others, as opposed to developing the ADA themselves. Despite the potential benefits of ADA, inheriting ADA could decrease auditors’ skeptical actions by diminishing their psychological ownership of the ADA. In an experiment where an ADA identifies a fraud red flag, we find that auditors who inherited the ADA are less likely to exercise skeptical actions than those who were personally involved in its development. We then provide evidence that informing auditors who inherit an ADA about the test development activities (e.g., a brief memorandum documenting the ADA's development) mitigates the negative effect of inheriting the ADA. Evidence from mediation analyses suggests that these effects are driven by decreased psychological ownership when auditors inherit the ADA.