THE ROLE OF PROFESSIONAL SCEPTICISM

Professional scepticism is an attitude, and in the context of the financial statement audit engagement 

is the attitude which should be adopted by all members of the engagement team. It requires that 

members of the team approach their work with a questioning mind, and that they be alert to 

conditions which may indicate possible misstatement due to error or fraud, and that audit evidence 

is critically assessed. It also means that members of the team should not allow themselves to be 

“led around by the nose” by client employees, and should not simply accept at face value what they 

are being told or shown by the client. An auditor should remain unconvinced of the truth of a 

particular fact until suitable evidence to support the fact is provided. 

Members of the audit team should, for example, be alert to 

 audit evidence that contradicts other audit evidence obtained 

 information that brings into question the reliability of documents and responses to inquiries 

to be used as audit evidence 

 conditions that may indicate possible fraud. 

Adopting professional scepticism is not an option it is a requirement. For example, even if the 

auditor regards management as being honest and trustworthy, the audit will still be conducted with 

an attitude of professional scepticism. 

Adopting an attitude of professional scepticism does not allow the members of the audit team to be 

rude to, or dismissive of the client’s personnel; the audit team’s approach should remain polite, 

dignified and professional.