Professional Skepticism

1

Contradicting other audit evidence

Audit evidence that contradicts other audit evidence obtained

2

Question on realibility of evidences

Information that brings into questionThe reliability of documents and responses to inquiries to be used as audit evidence

3

Fraud indication

Conditions that may indicate possible fraud

4

Need of additional procedure

Circumstances that suggest the need for audit procedures in addition to those required by the SAS.

5

Auditor is toreduce risk of..

Maintaining professional skepticism throughout the audit is necessary if the auditor is to reduce the risks of

i

Overlooking item

If auditor want to reduce the risk of

Overlooking unusual circumstances.

ii

Overgeneralisation

Over generalising when drawing conclusions from audit observations.

iii

Assumption  in nature timing and extent

Using inappropriate assumptions in determining the nature, timing, and extent of the audit procedures and evaluating the results thereof.

Professional skepticism is necessary to the critical assessment of audit evidence. It also includes consideration of the sufficiency and appropriateness of audit evidencE.

The auditor cannot be expected to disregard past experience of the honesty and integrity of the entity's management and those charged with governance. Nevertheless, a belief that management and those charged with governance are honest and have integrity does not relieve the auditor of the need to maintain professional skepticism.