Which is the essence of professional skepticism?
A)The auditor has interviewed client management for any changes in the business and industry.
B)The auditor has performed a critical evaluation of audit evidence.
C)The auditor has reviewed prior-year working papers and permanent file documents.
D)The auditor has taken a tour of a client's physical facilities,noting obvious inventory obsolescence or equipment maintenance issues.

Question

Quizplus · Accepted Answer

Professional skepticism is a mindset that includes a critical evaluation of audit evidence, being alert for potential fraud, recognizing conditions that may indicate the need for additional audit procedures, and maintaining a questioning mind. Therefore, option B correctly describes the essence of professional skepticism. The other options relate to other audit procedures but do not specifically relate to professional skepticism.

Which Is the Essence of Professional Skepticism