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Sunday, 12 March 2017

Professional skepticism in audit


It is a requirement of ISA 200 that, when planning and performing an audit, the auditor should adopt an attitude of professional skepticism.  Professional skepticism is defined by ISA 200 as:
“An attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence”.

This does not mean that the auditors should disbelieve everything they are told, but they should view what they are told with a skepticism attitude, and consider whether it appears reasonable and whether it conflicts with any other evidence. In other words, they must not simply believe everything management tells them.

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