Which of the following is True statement regarding professional skepticism?
A)Auditors reject most potential clients perceived as lacking honesty and integrity.
B)If the auditor has past experience with a client,they can assume the client is honest.
C)Material frauds occur in most of the audits of financial statements.
D)Professional skepticism is required only during the planning phase.

Question

Quizplus · Accepted Answer

Professional skepticism requires auditors to approach their work with a questioning mind and be alert to the possibility of fraud or error. As a result, auditors may reject potential clients if they perceive them as lacking honesty and integrity.

Answer: None of the above
 Choice B is incorrect because past experience with a client is not a sufficient basis for assuming their honesty. Choice C is incorrect because material frauds are not present in most audits of financial statements. Choice D is incorrect because professional skepticism is required throughout the entire audit process, not just during the planning phase.

Which of the Following Is True Statement Regarding Professional Skepticism