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Professional Skepticism In An Audit

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Throughout the period of the audit, assignation PCAOB describes professional skepticism as a general duty of care that needs to be applied by the examiner. Professional skepticism is when someone has a questioning mind that involves a critical assessment and analyzes of audit evidence. It is primordial for an auditor to exercise professional skepticism when conducting the audit of financial statements. In other words, an auditor must refer to quality and credible reference. The auditor needs to question every aspect of the data presented or words that management is feeding them in order to achieve reasonable assurance about the conclusiveness of evidence. In the end, this kind of attitude helps to detect fraud prior to the issuance of a company’s financial statements. After …show more content…

Independence in mental attitude concerns the auditor’s state of mind. It deals with inappropriate biases when auditing a firm. Whereas, independence in appearance, is avoiding the circumstance that makes well informed third parties believe that the auditor is not truly independent. Furthermore, independence in appearance lowers the prospect for an auditor to act otherwise than partially, which afterward improves trustworthiness to the audit report. If an auditor is, in fact, autonomous, but some factors imply the opposite, this might possibly lead to an assumption that the audit is biased and unfair. Will’s independence in appearance could have easily been compromised if investors were aware of his affiliation with Jess. In fact, his independence in mental attitude was indeed compromised. Because Jess is his friend’s wife affected Will’s emotional stress. This situation dimmed his result when he reflected that it could have been a mistake. Fortunately, he overcomes that uncomfortable dilemma by making the right judgment

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