Hi sir,
Part (a ) q it was specifically mentioned skepticisim related to outstanding legal case.
However in examiner answer it was about all case (in general)
For ex. Whether evidence prepared by mgt reliable
Hightined skepticism (judgement/assumptions)
Thats all general points and not related to outstanding legal case???
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Thronhill and co s/d 16
The para in the question which mentions the legal case goes on to explain that, actually, there is no evidence forthcoming from the directors about the matter - not even representations which, it is claimed, were provided to the group auditor. The thing about professional scepticism is that if the auditor is sceptical about one thing - it should be extended to other things - so the answer is not confined to consideration of the legal case alone, but the wider implications of not having sufficient evidence, etc.
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