The public places high value on an independent audit, as it directly enhances the degree of confidence intended users can place on the financial statements to make economic decisions. A proper mindset, including professional skepticism, is a critical feature of a high-quality audit. Professional skepticism is an essential attitude that enhances the auditor’s ability to identify and respond to conditions that may indicate possible material misstatement, whether due to fraud or error.
- Understand the importance of professional skepticism, especially when performing attest services
- Recognize fraud responsibilities in a financial statement audit
- Explain the varying levels of persuasiveness of audit evidence
- Discuss traits of a skeptical auditor
- Describe fraud defined and explored, including examples of fraud indicators
- Explain applying professional skepticism on an audit
- Discuss the auditor’s responsibility for identifying and responding to fraud