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Hello Sir,
Hope this finds you well. Kindly help me mark the F8 question below that i have answered. I would like to know how many marks i would be awarded out of three.
Awaiting your kind response.
Thanks
HumaQn: explain what is meant by professional scepticism and why it is so important that the auditor maintains professional scepticism thoroughout the audit?
Ans: professional scepticism is, not trusting the managers too much and gaining evidence from 3rd parties in order to gain appropriate evidence and giving a true and fair opinion because if the auditor works for the same client for several years, they form friendship and hav a high riskof losing professional scepticism which leads to unreliable audit opinion and report.
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We do not mark answer, but this is short, so I will make an exception this once.
Professional scepticism:
Don’t trust too much, but neither to you assume everyone is lying to you
Other evidence is not just from 3rd parties eg inspect inventory yourself.
Familiarity will jeopardise professional scepticism but the question did not ask about that.
Needs better structure instead of one rambling sentence.
Auditors give an opinion. It might say that the FS are T&F or otherwise. The aim is to collect sufficient appropriate evidence to support whatever opinion is arrived at.See Page 7 of our notes.
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