'The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered.This illustrates:
A) adhering to the Code of Ethics for Professional Accountants.
B) an attitude of professional scepticism.
C) unprofessional behaviour.
D) due diligence.

Question

Quizplus · Accepted Answer

The statement emphasizes the importance of considering the possibility of dishonesty, indicating an attitude of professional scepticism, which is a fundamental principle of auditing. The auditor should approach the audit with a questioning mind and critically evaluate the information they obtain, including assessing the risk of fraudulent activities. Therefore, option B, an attitude of professional scepticism, is the correct choice. Options A, C, and D are not relevant to the statement.

'The Auditor Should Not Assume That Management Is Dishonest, but the Possibility