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

The concept of professional skepticism requires the auditor to maintain a questioning mind and to be alert for any signs of potential misstatement or fraud. This means that the auditor should not assume either honesty or dishonesty of management, but instead approach the audit with a neutral and objective perspective. This allows the auditor to gather sufficient and appropriate evidence and make informed conclusions about the client's financial statements. Therefore, choice A is the correct answer.

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