In short
Professional skepticism is an attitude that includes a questioning mind, alertness to conditions that may indicate misstatement, and a critical assessment of audit evidence.
Key takeaways
- It applies throughout the audit, regardless of the auditor's past experience of management's honesty.
- It means not accepting less persuasive evidence because of a belief that management is honest.
- It is especially important for accounting estimates, related parties and fraud risks.
Where it's tested
AUD: Fraud Risk — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Which fraud-related presumption can NEVER be rebutted by the auditor?