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    PracticeCPA®CPA AUD Practice ExamQuestion 09
    Easy1 markMultiple Choice
    Area 1: EthicsAUDProfessional SkepticismGeneral Principles

    CPA · Question 09 · Area 1: Ethics

    Which of the following statements best describes the concept of 'Professional Skepticism' as defined in auditing standards?

    Answer options:

    A.

    An assumption that management is dishonest until proven otherwise.

    B.

    An attitude that includes a questioning mind and a critical assessment of audit evidence.

    C.

    The practice of authenticating every document inspected during the audit.

    D.

    The requirement to obtain absolute assurance that the financial statements are free from material misstatement.

    How to approach this question

    Select the definition that balances 'questioning mind' with 'critical assessment'. Avoid extremes like 'assuming dishonesty'.

    Full Answer

    B.An attitude that includes a questioning mind and a critical assessment of audit evidence.✓ Correct
    Professional skepticism is an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence.

    Common mistakes

    Equating skepticism with cynicism or the assumption of fraud.
    Question 08All questionsQuestion 10

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