An exception is permissible with regards to displaying professional skepticism in audit is understandable if the auditor has experienced integrity and honesty of client management in the past.

Question

Quizplus · Accepted Answer

Professional skepticism is a fundamental principle of auditing and it is mandatory for auditors to approach their work with an attitude of professional skepticism, regardless of their past experiences with the client’s management. All client assertions and representations need to be challenged and verified independently by the auditor, as it is the auditor’s responsibility to obtain sufficient and appropriate audit evidence to support their opinion on the financial statements. Therefore, exceptions to displaying professional skepticism are not permissible or understandable.

An Exception Is Permissible with Regards to Displaying Professional Skepticism