Professional Skepticism

Auditors may find this summary of resources of use in applying professional skepticism in the course of their engagements.

• A schedule of references to the term “professional skepticism” in the 2014 IAASB Handbook and in the new and revised Auditor Reporting standards (still to be updated for 2018 handbook).

Links to resources on the IAASB’s, IESBA's and IAESB's websites:

• Project page: The IAASB’s page dedicated to the Professional Skepticism project***
• Towards Enhanced Professional Skepticism - Observations of the IAASB - IAESB - IESBA Professional Skepticism Working Group
• pS focus: Professional skepticism lies at the heart of a quality audit – Exposure drafts (ED)
  pS focus: Professional skepticism lies at the heart of a quality audit – Professional skepticism and quality management (QM)
• pS focus: Professional skepticism lies at the heart of a quality audit – Applying and documenting professional skepticism
• Article: Research Insights – Auditor Professional Skepticism Part I: Incentives and Time 
• Article: Research Insights – Auditor Professional Skepticism Part II: Mindset, Prompts, and Environmental and Contextual Factors
• Article: Research Insights – Auditor Professional Skepticism Part III: Competence (Fraud Detection), Traits, and Conclusions & Future Research
• Staff Questions & Answers – Professional Skepticism in an Audit of Financial Statements (Note that this document was issued in 2012 therefore may not be up to date, but may still be of use to auditors)
• Personal Perspectives – Keith Bowman and W. Morley Lemon
• Accounting Education Insights – How Can We Become Better Skeptics?
• Accounting Education Insights – Unconscious Bias and Professional Skepticism
• Consultation Paper: Professional Skepticism – Meeting Public Expectations
• Exposure Draft – Proposed revisions to the Code to promote the role and mindset expected of professional accountants
• International webinar on proposed changes for role and mindset expectations
• Revisions to IES 8, Professional Competence for Engagement Partners Responsible for Audits of Financial Statements (Revised)
   

Related communiques

13 January 2017 - Standards News Omnibus: New Auditor's Report Q&A and Resources which can be used for applying Professional Skepticism
 

*** The IAASB commenced its initial information gathering on the topic of professional skepticism in June 2015. The issues identified and discussed at the IAASB meetings are part of the Invitation to Comment on Enhancing Audit Quality in the Public Interest which was issued in December 2015.

The working group comprised representatives from the IAASB, the International Ethics Standards Board for Accountants (IESBA), and the International Accounting Education Standards Board (IAESB) to explore the topic of professional skepticism, enabling the three independent standard-setting Boards to consider what actions may be appropriate within their collective Standards and other potential outputs to enhance professional skepticism.

Together with the Quality Control project and the ISA 600 – Group Audits project, this Professional Skepticism project is part of the Audit Quality Enhancements Coordination Group (AQECG) of the IAASB. The AQECG intends to coordinate the various inputs to the invitation to comment developed at the individual working group level, and take a holistic approach as to how the matters are presented in one invitation to comment.