Application of Professional Skepticism (On-Demand) 2019
Professional skepticism should be ingrained in our work every day – from the time we arrive to the time we depart. It should be on our minds from planning to wrap-up. It is critical we keep the core concepts of professional skepticism in mind at all times.
The companion chapter, Audit Staff Essentials New Staff: Core Concepts, “Introduction to Professional Skepticism,” covered the basics of professional skepticism, including our professional requirements under generally accepted auditing standards (GAAS); the link between professional skepticism and professional judgment; and impediments and mitigation techniques integral to the use of professional skepticism.
In this chapter, as in the companion chapter, a case study approach is used to illustrate and delve into further concepts related to professional skepticism, including additional factors that can impair our skepticism, the role of ethics, and a look at the tools we use to apply our skills. First, a broad look at the guidance that applies.
- Identify internal and external factors that affect the auditor’s application of professional skepticism and judgment influences that lead to less-than-optimal decision-making.
- Recall the connection between professional ethics and professional skepticism.
- Recall how and when to use a judgment framework.
Identify good practices for documenting professional skepticism.
- Internal and external factors affecting judgment
- Role of ethics
- Review of biases
- Professional judgment and professional skepticism
- The decision-making process
CPE Field of Study