Establishing an appropriate level of professional skepticism is achieved by ________.
A)gaining an understanding of the entity-level (or entity-wide) internal control components
B)talking to the internal audit function
C)discussions with the client's attorney
D)a directive from the audit partner in charge

Question

Quizplus · Accepted Answer

Professional skepticism is an attitude that includes a questioning mind and a critical assessment of audit evidence. One way to establish an appropriate level of professional skepticism is to gain an understanding of the entity-level (or entity-wide) internal control components, which helps the auditor identify areas where the client's controls may be weak or where they may have failed. While talking to the internal audit function and the client's attorney may provide useful information, they are not directly related to establishing professional skepticism. A directive from the audit partner in charge may not always be necessary, and the attitude of professional skepticism should be ingrained in the auditor's mindset regardless of any specific directive.

Establishing an Appropriate Level of Professional Skepticism Is Achieved by ________