An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors of fraud and therefore should
A) plan and perform the engagement with an attitude of professional skepticism.
B) not rely on internal controls that are designed to prevent or detect errors or fraud.
C) design audit tests to detect unrecorded transactions.
D) extend the work to audit the majority of the recorded transactions and records of an entity.

Question

Quizplus · Accepted Answer

An auditor should plan and perform the engagement with an attitude of professional skepticism in order to recognize the possibility of errors or fraud. This means that the auditor should approach the audit with a questioning mind and be alert to any potential indications of fraud or error. Professional skepticism involves maintaining an attitude of potential skepticism, but not being overly skeptical, which could lead to missing important audit evidence. This approach helps in designing an effective audit plan that identifies and addresses the risk of material misstatements due to fraud or error.

An Auditor Should Recognize That the Application of Auditing Procedures