"The auditor should not assume that management is dishonest, but the possibility of dishonesty must be considered." This is an example of:
A)unprofessional behavior.
B)an attitude of professional skepticism.
C)due diligence.
D)a rule in the AICPA's Code of Professional Conduct.

Question

Quizplus · Accepted Answer

This statement reflects the attitude of professional skepticism, which is an important mindset for auditors to have. It means being alert to the possibility of fraud or other irregularities without assuming that they exist. This helps auditors to thoroughly investigate and examine all evidence and come to a well-supported conclusion. The other choices are incorrect - A is not applicable as the statement is not unprofessional, C is too broad and vague, and D is not a specific rule in the AICPA's Code of Professional Conduct.

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