Explain the concept of professional skepticism and identify its two elements.

Question content area bottom

Part 1

Auditing standards

require

suggest

that the audit be planned and performed with an attitude of professional skepticism in

a few

all

most

aspects of the engagement, recognizing the possibility that

a material misstatement

an immaterial error

an immaterial misstatement

fraud

could exist

because

regardless

of the auditor's prior experience with the integrity and honesty of client management and those charged with governance.

Part 2

Identify the two elements of professional skepticism.

A.

(1) A critical assessment of audit evidence and (2) Autonomy

B.

(1) A questioning mind and (2) Suspension of judgment

C.

(1) A questioning mind and (2) A critical assessment of audit evidence

D.

(1) Suspension of judgment and (2) Interpersonal understanding