The state of mind that characterizes the auditors' appropriate questioning and critical assessment of audit evidence is referred to as:
A)Due care.
B)Independence in appearance.
C)Professional judgment.
D)Professional skepticism.

Question

Quizplus · Accepted Answer

The state of mind that characterizes the auditors' appropriate questioning and critical assessment of audit evidence is referred to as professional skepticism. Professional skepticism is an attitude that includes a questioning mind and critical assessment of audit evidence, recognizing that circumstances may exist that cause the financial statements to be materially misstated. It is an essential element of an audit and is necessary for auditors to fulfill their responsibility to obtain reasonable assurance about whether the financial statements are free from material misstatement.

The State of Mind That Characterizes the Auditors' Appropriate Questioning