Auditor's need to exhibit professional skepticism when auditing a client. This auditing standard is best expressed by which of the following?
A) the auditor neither assumes dishonesty or honesty of management
B) the auditor assumes dishonesty of management
C) the auditor assumes honesty of management
D) the auditor assumes management lacks integrity

Question

Quizplus · Accepted Answer

Professional skepticism requires the auditor to neither assume dishonesty nor assume honesty of management, but instead to maintain an unbiased mindset and approach the audit with a questioning mindset in order to identify potential misstatements or fraud. Therefore, option A is the correct answer. Options B, C, and D are all incorrect as they assume a preconceived bias towards management.

Auditor's Need to Exhibit Professional Skepticism When Auditing a Client