An important principle for auditors is the need to maintain an

appropriate level of professional skepticism.

Required:

a$.$ Define professional skepticism.

b$.$ During which stages of the audit are auditors required to exhibit professional skepticism?

c$.$ How does each of the following independent issues potentially relate to the principle of

professional skepticism?

$1.$ The auditor$$s firm has served the client for a long period of time, and strong friendships

have developed between the firm personnel and client$$s officers.

$2.$ Auditors are anxious to complete the audit shortly because of other workload demands

and deadlines related to other engagements.

$3.$ The client has mentioned on a number of occasions its desire to reduce $($or limit$)$ the

audit fee