Why is professional skepticism necessary to detecting fraud

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Reference no: EM13887348

Refer to the Auditing in Practice feature, "Professional Skepticism."

a. What is professional skepticism?

b. Why is professional skepticism necessary to detecting fraud?

c. What are the key behaviors needed to successfully exercise pro- fessional skepticism during the performance of the audit?

d. Why is it sometimes difficult for auditors to exercise appropri- ate levels of professional skepticism in practice?

e. Imagine that you are working on an audit engagement. What are the personal characteristics and behaviors of management or other company employees that might make you skeptical about whether or not they are providing you accurate audit evidence? Aside from personal observations, what publicly available information about management or other company employees could you obtain to determine whether you should exercise heightened professional skepticism in your dealings with these individuals?

Reference no: EM13887348

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