Because of the risk of material misstatement,an audit of financial statements in accordance with generally accepted auditing standards should be planned and performed with an attitude of
A) Objective judgment.
B) Independent integrity.
C) Professional skepticism.
D) Impartial conservatism.

Question

Quizplus · Accepted Answer

Professional skepticism is necessary in order for the auditor to undertake a critical assessment of evidence provided by management, and to add an overall level of skepticism when it comes to assessing the integrity and authenticity of financial records. Professional skepticism does not mean that the auditor is suspicious or accusatory for the sake of it, but rather that he or she is alert and objective in assessing evidence objectively. This will help to detect any instances of misstatement, fraud or errors that management may have perpetrated or overlooked, and will help preserve the integrity of the accounting records.

Because of the Risk of Material Misstatement,an Audit of Financial