Question

what are the factors that are critical to a professional auditor properly applying professional skepticism?

Answer 1

The framework for auditor objectivity and professional skepticism is reflected in PCAOB professional standards. The standards demand the appropriate application of professional skepticism throughout the audit process, and emphasize that professional skepticism:

1.a component of the auditor's general duty of care that applies throughout the audit;

2.an attitude that includes a questioning mind and a critical assessment of the appropriateness and sufficiency of audit evidence; and

3.comprises three elements — auditor attributes, mindset, and actions.

The three elements of professional skepticism — auditor attributes, auditor mindset, and auditor actions — permeate the entire audit process and are integral to audit quality. These elements of professional skepticism interact dynamically as auditors respond to conditions and pressures that change or arise during the audit. As a result of skeptical judgments made during the planning and performance of the audit, for example, the level of skill and expertise needed, as well as other auditor actions and audit work conducted are likely to change during the audit.