An auditor should recognise that the application of auditing procedures may produce evidential matter indicating the possibility of errors or fraud and therefore should:
A) plan and perform the engagement with an attitude of professional scepticism.
B) extend the work to audit most recorded transactions and records of an entity.
C) design audit tests to detect unrecorded transactions.
D) not depend on internal accounting control features that are designed to prevent or detect errors or irregularities.

Question

Quizplus · Accepted Answer

Professional scepticism is an attitude that includes a questioning mind and a critical assessment of audit evidence. It means being alert to the possibility that the evidence obtained during an audit may be unreliable or misleading. Therefore, an auditor should plan and perform the engagement with professional scepticism, which includes being aware of the possibility of errors and fraud.

B, C and D are not the best choices as they do not directly address the need for professional scepticism. While auditing most recorded transactions and records of an entity, designing audit tests to detect unrecorded transactions, and not depending on internal accounting control features are important aspects of an audit, they do not specifically address the need for professional scepticism in dealing with the possibility of errors or fraud.

An Auditor Should Recognise That the Application of Auditing Procedures