Ethical Obligations and Decision-Making in Accounting 2nd Edition by Steven Mintz, Roselyn Morris

Exercise 14

Why is professional skepticism important for management accountants?

Step 1 of 2

Ethics:

Ethics is the set of some moral values and principal that differentiate right and wrong morally.

Fraud:

Fraud means the willingly wrong representation of something, to hide some material facts from outsiders or mislead them about some facts.

Professional skepticism:

The audit presumes that there are chances of revenue fraud before the audit process so that he can check the financial statement as per that mindset.