Professional skepticism

1. Financial reporting - assurance - audit.

An attitude of an auditor that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of evidence.

Professional auditing standards require auditors to plan and perform their audit work with professional skepticism recognizing that circumstances may exist that cause the financial statements to be materially misstated.

Any past experience of the honesty and integrity of the entity's management and of those charged with governance notwithstanding.

Circumstances and people can change.

2. Professional standards.

A similar approach to other professional work.

Sometimes spelled scepticism.

See also

• Assurance
• Attestation
• Audit
• Audit opinion
• Auditing standards
• Auditor
• Auditors’ report
• Due diligence
• Expectation gap
• Financial reporting
• Financial statements
• Fraud
• Governance
• Misstatement
• Standard
• Third line of defence
• True and fair view