Professional skepticism is an essential attitude that enhances the auditor’s ability to identify and respond to conditions that may indicate possible misstatement . It includes a critical assessment of audit evidence. ... This critical assessment is necessary in order for the auditor to draw appropriate conclusions.
What does it mean to be professionally skeptical?
Professional skepticism is an attitude that includes a questioning mind and a critical assessment of audit evidence . ... In exercising professional skepticism, the auditor should not be satisfied with less than persuasive evidence because of a belief that management is honest.
How do you demonstrate professional skepticism?
- Audit evidence that contradicts other audit evidence obtained.
- Information that brings into question the reliability of documents and responses to inquiries to be used as audit evidence.
- Conditions that may indicate possible fraud.
Why should an auditors have professional skepticism in doing field work?
Professional skepticism is crucial to your duty of care as an auditor . This concept includes skepticism in the usual sense, an inquiring mind, and a critical eye towards audit evidence. Acting with proper skepticism allows you to diligently audit in good faith, with integrity, based on objective facts.
What are the key elements to applying professional skepticism?
The three elements of professional skepticism — auditor attributes, auditor mindset, and auditor actions — permeate the entire audit process and are integral to audit quality.
What are the six elements of professional skepticism?
Describe two of those six elements. What are the six elements of professional skepticism? (1) Questioning mindset; (2) Suspension of judgment; (3) Search for knowledge; (4) Interpersonal understanding; (5) Autonomy; and (6) Self-esteem .
Can professional skepticism be learned evidence from China?
A questionnaire was administered to students enrolled either in the accounting program or in the business administration program of a large college in China. ... The author also finds that accounting and nonaccounting business students exhibit no significant difference in their scores of professional skepticism.
What is professional skepticism and why is it important?
Professional skepticism is an essential attitude that enhances the auditor’s ability to identify and respond to conditions that may indicate possible misstatement . It includes a critical assessment of audit evidence. ... This critical assessment is necessary in order for the auditor to draw appropriate conclusions.
How is professional skepticism different from professional judgment?
An audit involves performing procedures to obtain sufficient appropriate audit evidence. The auditor’s professional judgement is applied in deciding which procedures are to be performed. ... Professional scepticism is identified by the International Standards on Auditing (ISAs) as the attitude of audit team members.
What are threats to professional skepticism?
Some of the potential threats to professional skepticism that may exist at the Individual Auditor level include: Judgment traps and biases , lack of knowledge and expertise. Deadline pressure, inherited preferences, and expectations. Auditor character, and personal and cultural attributes.
What is the relationship between auditor independence and professional skepticism?
However, auditor independence is impossible due to the auditor–client structure and conscious and unconscious personal bias. The threats to auditor independence are powerful incentives that reduce professional scepticism, making it difficult to exercise professional scepticism while making professional judgement.
What does professional judgment mean?
This involves applying relevant training, knowledge, and experience within the context provided by relevant professional and technical standards , as applicable, in making informed decisions about courses of action that are appropriate in the circumstances. ...
What does it mean to approach an audit with an attitude of professional skepticism?
What does it mean to approach an audit with an attitude of professional skepticism? Professional skepticism primarily consists of two components: a questioning mind and a critical assessment of the audit evidence.
How can professional skepticism be improved?
Application of Good Judgment Process: An important way to improve professional skepticism in individual auditors is to accelerate their ability to exercise sound judgment by following a good judgment process and learning to avoid judgment traps and biases.
What is fundamental to exercising professional skepticism?
The fundamental to professional skepticism is the attitude of the auditor to approach issues in an objective, and critical nature . Therefore assessing evidence as such, before making judgments. ” The [skeptic] promotes risk awareness and is inherently an enemy of fraud.” (KPMG Ch.
What do you call someone who is skeptical?
skeptic Add to list Share. A skeptic is a person who doesn’t believe something is true unless they see evidence. ... Skeptics are doubters — they need to see proof before they will believe.
