Auditing standards define professional scepticism and require its application in many phases of the audit. ASIC’s financial-reporting and auditor-surveillance programs, corporate restatements and negligence claims reveal examples where scepticism has been lacking. This will session:
- Review the requirements of auditing standards concerning professional scepticism and link them to rules regarding risk-based auditing and audit evidence
- Report on latest developments in the practical application of professional scepticism
- Identify how scepticism should be documented in the audit file, and
- Describe what should be in your scepticism audit policy.