Professional scepticism

Generally 1 mark for each comment:

– Definition of professional skepticism
– Explain – alert to contradictory evidence/unusual events/fraud indicator (up to 2 marks)
– Part of ethical codes
– Coot Co – evidence is unreliable and contradictory
– Absence of authorisation is fraud indicator
– Additional substantive procedures needed
– Management’s comments should be corroborated
– Control deficiency to be reported to management/those charged with governance
– Audit junior needs better supervision/training on how to deal with deficiencies identified

Maximum marks 6