1. The document discusses enhancing professional skepticism in auditing. It notes that increased attention to business acumen, awareness of personal biases, and building in skepticism from the outset are key to exercising skepticism. 2. It also recommends that the standard-setting boards can do more to strengthen the application of professional skepticism, both immediately and long-term, including in areas like accounting estimates, group audits, and risk assessment. 3. Beyond auditing, aspects of professional skepticism may also be relevant for all professional accountants. However, standard-setting alone will not be enough, and other stakeholders must also play a role in supporting high-quality financial reporting.

1. Toward Enhanced Professional Skepticism
ACCA, Brussels, Belgium
October 17, 2017
Prof. Arnold Schilder, IAASB Chairman

2. Professional Skepticism – Key Observations
1. Increased attention to business acumen is central to the exercise of professional skepticism.
2 Environmental factors can influence the ability to exercise professional skepticism.
3. Awareness of personal traits and biases is essential.
4. Building in professional skepticism from the outset is key.
5. There is more that the three standard-setting boards can do, both in the immediate term and
the longer term.
6. Beyond audit, aspects of the concepts underlying professional skepticism may be relevant to
all professional accountants.
7. Standard setting alone will not be enough.
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3. Addressing Fundamental Elements of the Audit
3
High-Quality Audits
in a Changing Business Environment –
Influenced by Technology, Complexity, and Demands
for Continued Relevance
Quality Control
at the
Engagement
Level (ISA 220)
Auditing
Accounting
Estimates,
Including Fair
Values (ISA 540)
Group Audits
(ISA 600)
Risk
Identification and
Assessment
(ISA 315)
Strengthening the Application of Professional Skepticism
Enhancing Firms’ Systems of Quality Control (ISQC 1)

4. Framework for Audit Quality – Audit Quality Interactions
• Primary responsibility for
performing quality audits rests
with auditors, but …
• Each stakeholder plays an
important role supporting
high-quality financial
reporting
• Audit quality is best achieved
in an environment where
there is support and challenge
from other participants
• Increased interaction is
promoted in the Framework
for Audit Quality
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