3 (a) Professional skepticism discussion
Generally up to 1½ marks for each point discussed, including:
– Definition of professional skepticism (1 mark for definition)
– Explaining professional skepticism – alert throughout audit, alert to contradictory evidence, challenge
assumptions, reliability of evidence
– Link between professional skepticism and ethics/objectivity
– Importance of professional skepticism in relation to complex and subjective areas of the audit,
e.g. fair values
– Importance of professional skepticism in relation to the audit of going concern
– Discussion of regulatory bodies actions in relation to professional skepticism
Maximum marks 5