Question

Consider this statement, “Auditors should only use professional skepticism when considering fraud risk.” Do you agree or disagree with this statement? Support your position.

Answer 1

Yes, I am agree with the statement that auditors should only use professional skepticism when considering fraud risk.”

As we know that professional skepticism as an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatement due to fraud or error, and a critical assessment of audit evidence.

So we should quickly realize that professional skepticism can’t be easily measured, It is a skill developed by auditors after a long study and practical work for a long. professional skepticism provides the foundation for decision-making when conducting an attestation engagement during audit.

Finally Following facts are available In favour of my answer-

1.The more skeptical the auditor, typically, the more time it takes to complete the audit.

2. If our auditor is overly concerned with completing the audit within a fixed time budget, professional skepticism and, ultimately, the quality of the audit, may suffer.

3. Auditors who are not skeptical enough in carrying out their duties effectively.

Thanks & all the best.................