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Examples Of Professional Skepticism

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Professional skepticism is an attitude which includes questioning the mind and being alert to conditions that may indicate the possible misstatement because of error or fraud, and an important assessment of evidence, in professional standards the framework for auditor objectivity and professional skepticism is reflected. Throughout the audit process, the standards demand the appropriate application of professional skepticism, and emphasize that professional skepticism comprises three elements — auditor attributes, mindset, and actions.
Except the auditor has reason to believe the opposite, the auditor may accept official records and documents.
The auditor make further investigation if conditions identified during the audit cause the auditor …show more content…

The conversation and arguments includes the engagement partner who uses professional judgment, previous experience with the entity and the awareness of the existing and occurring developments to determine which other members of the engagement team are included in the argument. This argument places special attention can the vulnerability of the financial statements to material misstatements due to fraud. Usually the argument includes also the key members of the engagement team. It provides a chance for progress and advancement for more experienced engagement team members to all of the financial statements may be vulnerable to misstatement due to fraud. The engagement associate must think about matters that are going to be discussed to members of the engagement team not associated in the discussion. Entirely not all members need to be instructed of all the decisions delivered in the discussion. For instance, a member of the engagement team associated in audit of a component of the entity. The argument or discussion is presented with a survey mind setting aside any claims that the engagement team members may have that management and those responsible powered with governance are honest and have strict morale …show more content…

Yet, risk procedures can’t stand alone to prepare enough audit evidence on which to base the audit opinion.
The possibility of assessing procedures should suggest the following:
 Seeking information of management and of others within the entity who in the auditors judgment due to fraud or any mistakes. Much of the information gained from management and those answerable for financial reporting. Nevertheless, the auditor may also gain information or a different view in identifying risks of material misstatement, by means of inquires of others within the entity and other employees with different levels of

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