Accounting Ethics

Madison is in the process of gathering evidence to support the audit opinion of Jefferson & Adams, Inc) She's a new staff accountant and wants to make sure she exercise the appropriate level of professional skepticism. Madison asks for your advice as the senior on the audit. How best might you guide her as to the skepticism issues? Which is the best option?

1) keep an open mind and rely on your team in making professional judgments.

2. always review the evidence you gather to assess persuasiveness.

3. Accept management's representation unless they fail to provide adequate supporting documentation

4. Approach the audit assuming fraud does not.