The public places high value assurance services provided by an external public accountant, as the CPA’s involvement directly enhances the degree of confidence intended users can place on the financial statements to make economic decisions. A proper mindset, including professional skepticism, is a critical feature of a high-quality audit or other attest service. Professional skepticism is an essential attitude that enhances the ability to identify and respond to conditions that may indicate possible material misstatement, whether due to fraud or error.
Major Topics:
- Understand the importance of professional skepticism, especially when performing audit or other attest services.
- Recognize specific fraud responsibilities in a financial statement audit.
- Explain the varying levels of persuasiveness of evidence to support assurance conclusions or opinions.
Prerequisites
No Advanced Preparation or Prerequisites are needed for this course.
Learning Objective
- Discover and discuss traits of a skeptical auditor.
- Explore and explain applying professional skepticism on any assurance service.
- Recognize and describe fraud, including examples of fraud indicators.
- Identify and discuss the auditor’s responsibility for identifying and responding to fraud in a financial statement audit.
Last updated/reviewed: March 8, 2024
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Jennifer Louis
CPA, President of Emergent Solutions Group LLC
INTRODUCTION AND OVERVIEW
- Introduction to Professional Skepticism - Creating a Mindset for Finding Fraud and Error 0:39
- What is Professional Skepticism? 16:13
- Applying Professional Skepticism 21:57
- Professional Skepticism Case Studies 7:21
- PCAOB Practice Alert Related to Professional Skepticism 8:39
- Persuasiveness of Evidence 11:18
- Auditors Responsibility for Fraud 11:26
- Auditors Responsibility-for-Noncompliance 4:52
- Tips for Maintaining Professional Skepticism 3:40
CONTINUOUS PLAY
SUPPORTING MATERIALS
- Professional Skepticism - Creating a Mindset for Finding Fraud and Error PDF
- Professional Skepticism - Creating a Mindset for Finding Fraud and Error Glossary/Index PDF
REVIEW & TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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