Consider this statement, “Auditors should only use professional skepticism when considering fraud risk.” Do you agree...

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

Expert Solution

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.................

ekkarill92 answered 2 years ago

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