Evaluate the need for maintaining professional skepticism

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Question - Carillion plc was a British multinational construction and facilities management services company headquartered in Wolverhampton in the United Kingdom, prior to its liquidation officially, "the largest ever trading liquidation in the UK" - which began in January 2018.

Later, in a June 2018 report on audit standards across eight accounting firms in the UK, the FRC (Financial reporting Council)- the regulatory agency of the auditing profession in the UK identified: "failure to challenge management and show appropriate skepticism across their audits." It highlighted a decline in the quality of work undertaken by the Big Four, with Carillion's auditor KPMG performing the worst.

Required - Critically evaluate the need for maintaining professional skepticism during an audit.

Reference no: EM132557181

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