What is possible problems arises resulted from professional sceptism .

Expert Solution

Let me start by explaining what professional skepticism really means. Professional skepticism is an attitude that requires using a questioning mind besides being alert to conditions that may indicate possible misstatement of financial numbers either due to fraud or error. It also includes a critical assessment of the audit evidence.

In the field of audit certain problems can arise due to professional skepticism. First of all when an appropriate level of professional skepticism is not applied then it will reduce the likelihood that the auditor properly understands the client’s industry, line of business and different business processes being used. Secondly it is not always easy for auditors to apply professional skepticism in a systematic manner under all circumstances as many a times the auditors have a predisposition to clients. Another problem is that it is not easy to consistently apply professional skepticism appropriately. As such certain red flags may be missed. Lastly professional skepticism can be detrimental to the audit if the auditors become too skeptic. Too much skepticism can lead to over-auditing and this will lead to problems with regards to meeting deadlines of the audit engagement.

ekkarill92 answered 1 year ago

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