Professional Skepticism in Auditing:

Professional skepticism is a fundamental principle in auditing that requires auditors to maintain a questioning mindset and critically assess audit evidence throughout the audit process. It involves a healthy degree of doubt and a willingness to challenge management assertions and assumptions. Professional skepticism is essential for auditors to effectively identify potential risks of material misstatement in financial statements and to obtain sufficient and appropriate audit evidence to support their conclusions. Auditors must approach audit engagements with an objective and impartial attitude, considering all available evidence and exercising judgment to arrive at well$-$founded audit opinions. By applying professional skepticism, auditors enhance the credibility and reliability of audit engagements, promoting trust in financial reporting and the audit profession.

Objective Question:

Which of the following best describes the role of professional skepticism in auditing?

A$)$ Accepting management assertions without question

B$)$ Approaching audit engagements with a questioning mindset

C$)$ Relying solely on audit software for evidence

D$)$ Avoiding communication with audit committee members