The document discusses a sound approach to professional skepticism. It introduces the Center for Audit Quality (CAQ) and their focus on providing thought leadership, research, resources, and partnerships related to professional skepticism for management, boards, auditors, and internal auditors. It outlines a skepticism continuum and how different levels of skepticism can impact efficiency. It also discusses how skepticism supports an ethical culture by avoiding excuses and analyzing behaviors objectively. Finally, it notes that etiquette is essential for effective skepticism and lists skills like listening, word choice, and body language.

1. A Sound Approach to Professional Skepticism
70th Meeting of the IAASB
Professional Skepticism Panel
June 17, 2015
New York, NY
Cindy Fornelli
Executive Director
Center for Audit Quality

2. A Sound Approach to Professional Skepticism
Introduction to the CAQ
• CAQ founded in 2007
• Providing…
 Thought leadership
 Research
 Resources
 Partnerships
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3. A Sound Approach to Professional Skepticism
A Sound Approach: Skepticism for Everyone
• Management
• Boards/Audit committees
• External audit
• Internal audit
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4. A Sound Approach to Professional Skepticism
Skepticism Continuum
• Finding the
appropriate level
of skepticism
• Different approaches
have impact on
efficiency
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* Neutral—neither assuming management dishonesty nor unquestioned honesty.
** Professional Skepticism does not include the area of the continuum depicted by complete trust; in the area depicted
as complete doubt, the auditor will move to a forensic mindset.
Source: Glover, Steven M. and Douglas F. Prawitt. Enhancing Auditor Professional Skepticism. Global Public Policy
Committee. 2013.

5. A Sound Approach to Professional Skepticism
Skepticism Supports an Ethical Culture
• Avoiding ethical pitfalls
 Example: “Everyone does it”
• Knowing and analyzing behavior
 Do the “words match the music”?
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6. A Sound Approach to Professional Skepticism
Etiquette Is Essential to Effective Skepticism
• Setting
• Word choice and vocal tone
• Listening skills
• Facial expression
• Body language
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7. A Sound Approach to Professional Skepticism
Thank You
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