Reliability Of The Professional Skepticism Of Auditors

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assessment and the incorrect assertion depends on the conditional information that the auditor is having. Some of the reasons highlighted about the financial misstatements are clients’ effective internal controls. The auditors with high professional skepticism are likely to bring more persuasive evidence in terms of quality and quality of information that leads to more accurate financial reporting with error free statements. So for conducting effective audits it is necessary for auditors to adopt professional skepticism. A model has been presented in the paper that is used for highlighting dependence of audit evidence on auditors’ knowledge and certain traits including incentives for producing making accurate judgments reflected through professional skepticism. It also reflects the importance of pre- existing knowledge for the auditor and other traits that are leads to professional skepticism and accurate audit judgments and audit actions. Professional skepticism can also be used by organizations for hiring, training, performance appraisals, reviews, and incentives for improving the reliability of auditing. Nelson explained three important factors play significant role in influencing the professional skepticism of auditors. The first factor is the personal specific traits and characteristics of auditor that influences the professional skepticism as it is important in determining the personality of an auditor and developing tendency towards skepticism. Second facto involves the knowledge, training and experiences that are attained form education and have significant impact on auditors’ skepticism. Third factor involves the incentives that are for developing effective audits and the incentives involve clients’ fee, potential costs... ... middle of paper ... ...oncepts (BEC). There are possibilities of replacing BEC section with integrated section that involves higher order skills by incorporating components of taxation, auditing, financial accounting and reporting. The staff is still exploring the idea of integrated section and finding if it is possible to replace it with the BEC section as some support for BEC still exists. AICPA’s intentions are to test the professional skepticism on CPA exam. The purpose of incorporating professional skepticism is providing sate of board with reasonable accounting assurance that confirms the students who passed grades are having necessary technical knowledge and skills and the purpose is ensuring exam measures with right knowledge and skills for protecting public interest. Application skills have been modified and increased emphasis has been on higher order skills and evaluation skills

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