AUD 1.01 - TYPES OF AUDITS Flashcards
1.01 - TYPES OF AUDITS:
Which of the following best characterizes an auditor’s exercise of professional skepticism?
A) Obtaining adequate conclusive evidence in support of the fairness of the financial statements.
B) Taking into account past relationships and experiences with management.
C) Conducting all fraud-related inquiries in a non confrontational manner
D) Having an attitude that includes a questioning mind.
D) Having an attitude that includes a questioning mind.
Professional skepticism means entering into an engagement with an attitude that includes a questioning mind.
This will encourage the auditor to make fraud related inquiries, which may be confrontational or not, depending on the circumstances.
Audit evidence is persuasive but rarely conclusive.
Although the auditor will take past relationships and experiences with management into consideration, professional skepticism will prevent the auditor from letting those factors have too much of an influence on the conduct of the engagement.
