An auditor should recognize that the application of auditing procedures may produce evidence indicating the possibility of errors or 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 most recorded transactions and records of an entity.

Question

Quizplus · Accepted Answer

The auditor should approach the engagement with an attitude of professional skepticism, recognizing that errors or fraud may exist. This involves a questioning mindset and a critical assessment of evidence obtained during the audit. Choices B, C, and D are not necessarily required to address the possibility of errors or fraud.

An Auditor Should Recognize That the Application of Auditing Procedures