Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 41

Professional Skepticism. An important principle for auditors is the need to maintain an appropriate level of professional skepticism.
Required:
a. Define professional skepticism.
b. During which stages of the audit are auditors required to exhibit professional skepticism?
c. How does each of the following independent issues potentially relate to the principle of professional skepticism?
1. The auditor's firm has served the client for a long period of time and strong friendships have developed between the firm personnel and client's officers.
2. Auditors are anxious to complete the audit shortly because of other workload demands and deadlines related to other engagements.
3. The client has mentioned on a number of occasions its desire to reduce (or limit) the audit fee.