Do you work in auditing? Check out our new guide on documenting the exercise of professional scepticism, with a series of questions for different members of the engagement team to use as a reference tool. We have developed this with the Chartered Professional Accountants of Canada. The level of professional scepticism exercised by auditors is one of the focus areas identified by regulators globally. More information is available at charteredaccountants.com.au/professionalscepticism
Quality Web Based Training publishes professional articles in our monthly newsletter. This month’s article, Clash of the Auditors, by JP Russell, Managing Director of QualityWBT, addresses the differences occasionally confronted in the world of quality auditing. Abstract - Although auditing has been around for a long time, we still cannot all agree on the best performance practices. Different terms are used for the same meaning and, conversely, a single term may have several different meanings. This paper will explore the uncommon practices...the methods we don't agree on, and differences in auditing including audit program administration, preparing for the audit, conducting the audit, practices, reporting the results, and the follow-up activities.
Quality Web Based Training publishes professional articles in our monthly newsletter. This month’s article, Clash of the Auditors, by JP Russell, Managing Director of QualityWBT, addresses the differences occasionally confronted in the world of quality auditing. Abstract - Although auditing has been around for a long time, we still cannot all agree on the best performance practices. Different terms are used for the same meaning and, conversely, a single term may have several different meanings. This paper will explore the uncommon practices...the methods we don't agree on, and differences in auditing including audit program administration, preparing for the audit, conducting the audit, practices, reporting the results, and the follow-up activities.
In this file, you can ref useful information about nursing performance appraisal examples such as nursing performance appraisal examples methods, nursing performance appraisal examples tips, nursing performance appraisal examples forms, nursing performance appraisal examples phrases … If you need more assistant for nursing performance appraisal examples, please leave your comment at the end of file.
Australia and New Zealand perform well in global measures of corruption, and both countries trade on reputations for honesty and integrity.
However, rates of corruption are reported to be rising and we are trading increasingly often with countries that are considered to be highly corrupt.
This future[inc] paper examines what is currently being done, and what should be done to mitigate corruption in Australia and New Zealand.
The Institute of Chartered Accountants in Australia is pleased to release the supplementary
paper to its 2008 thought leadership paper, Broad Based Business Reporting – The complete reporting tool.
This original paper provided an overview of Broad Based Business Reporting (BBBR), including the
importance of financial and non-financial key performance indicators (KPIs) and ways to incorporatenon-financial KPIs into existing reporting. The original paper should be read in conjunction with thissupplementary paper.
http://www.charteredaccountants.com.au
http://www.charteredaccountants.com.au/smtoolkit Social media channels such as LinkedIn, Facebook and Twitter can assist in the recruitment process, however it's important to understand the legal and privacy implications.
One of Australia’s leading and incisive economists, Craig James explains how Australia’s performance has shown signs of strength and resilience compared to other economies and shows signs of recovery. He also delves into what is likely to happen and affect our economy into the future. As a seasoned professional within banking, finance and journalism over the last 27 years, Craig is currently Chief Equities Economist at Commonwealth Securities, where he interprets 'big picture' economic and financial trends for customers, clients and staff.
http://www.charteredaccountants.com.au
This paper sets out the context of financial crises with the aim of stimulating discussion on developing early warning systems.
http://www.charteredaccountants.com.au
Are traditional financial reports still a valid part of organisational communication and accountability? Or has the financial report become an impenetrable collection of numbers and words, prepared only for compliance purposes, and only understood by a few technical elite? Is financial reporting keeping up with the increasingly complex demands of business? What effect is digital disruption having?
Noise, Numbers and Cut-Through looks at the effectiveness of financial reporting as a communication tool and responds to these questions by examining the experiences of two leading companies and their assault against disclosure overload.
Learn more: http://www.charteredaccountants.com.au/futureinc
The Chartered Accountants Program is your pathway to becoming a CA, a widely recognised business qualification that’s sought after by employers across industries. Learn more about the Program, its content and how to apply.
In this file, you can ref useful information about nursing performance appraisal examples such as nursing performance appraisal examples methods, nursing performance appraisal examples tips, nursing performance appraisal examples forms, nursing performance appraisal examples phrases … If you need more assistant for nursing performance appraisal examples, please leave your comment at the end of file.
Australia and New Zealand perform well in global measures of corruption, and both countries trade on reputations for honesty and integrity.
However, rates of corruption are reported to be rising and we are trading increasingly often with countries that are considered to be highly corrupt.
This future[inc] paper examines what is currently being done, and what should be done to mitigate corruption in Australia and New Zealand.
The Institute of Chartered Accountants in Australia is pleased to release the supplementary
paper to its 2008 thought leadership paper, Broad Based Business Reporting – The complete reporting tool.
This original paper provided an overview of Broad Based Business Reporting (BBBR), including the
importance of financial and non-financial key performance indicators (KPIs) and ways to incorporatenon-financial KPIs into existing reporting. The original paper should be read in conjunction with thissupplementary paper.
http://www.charteredaccountants.com.au
http://www.charteredaccountants.com.au/smtoolkit Social media channels such as LinkedIn, Facebook and Twitter can assist in the recruitment process, however it's important to understand the legal and privacy implications.
One of Australia’s leading and incisive economists, Craig James explains how Australia’s performance has shown signs of strength and resilience compared to other economies and shows signs of recovery. He also delves into what is likely to happen and affect our economy into the future. As a seasoned professional within banking, finance and journalism over the last 27 years, Craig is currently Chief Equities Economist at Commonwealth Securities, where he interprets 'big picture' economic and financial trends for customers, clients and staff.
http://www.charteredaccountants.com.au
This paper sets out the context of financial crises with the aim of stimulating discussion on developing early warning systems.
http://www.charteredaccountants.com.au
Are traditional financial reports still a valid part of organisational communication and accountability? Or has the financial report become an impenetrable collection of numbers and words, prepared only for compliance purposes, and only understood by a few technical elite? Is financial reporting keeping up with the increasingly complex demands of business? What effect is digital disruption having?
Noise, Numbers and Cut-Through looks at the effectiveness of financial reporting as a communication tool and responds to these questions by examining the experiences of two leading companies and their assault against disclosure overload.
Learn more: http://www.charteredaccountants.com.au/futureinc
The Chartered Accountants Program is your pathway to becoming a CA, a widely recognised business qualification that’s sought after by employers across industries. Learn more about the Program, its content and how to apply.
Digital Currencies: Where to from here? explores the most popular of the digital currencies, Bitcoin, and outlines the current state of play in Australia, New Zealand and internationally. In addition to explaining how digital currencies work and examining the implications that they have on our tax and financial systems, the paper looks at the roadblocks currently preventing digital currencies from obtaining “mainstream” acceptance, and poses the question “Is it the future or is it a fad, and where to from here?”
There is no doubt that digital currencies are not a fad, they are here to stay. They offer businesses and retailers faster, safer, cheaper processing and potentially enable them to tap into new markets. However, digital currencies pose challenges for Governments in areas such as banking regulation, consumer protection and tax. Also, due to the anonymity that their use affords, digital currencies are often associated with organised crime and terrorist financing activities.
For accountants and auditors, one challenge is that owners of the currency are not personally identified or traceable but, on the flipside, the distributed ledger (called the blockchain) is transparent, displaying to everyone all transactions. Download your copy.
To help audit firms consider the effectiveness of their quality controls and processes, the Institute has released the paper, Sharing experiences on audit quality. It is based on the experiences of large firms who have made enhancements to their own audit quality control systems.
CIA part 1 essentials of internal auditingariundalai1
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Audit company - Audit for companies - PKC Management ConsultingPKCIndia2
An audit company is usually hired to perform the audit process. The auditor will work closely with the company's finance team to review financial statements, internal controls, and other relevant documents. we will provide an overview of how audits work, including the different stages and levels involved in the process. Whether you are a business owner or a professional looking to learn more about auditing practices, this article will serve as a useful guide. In conclusion, PKC Management Consulting is a reputable audit company that offers comprehensive and efficient auditing services for companies of all sizes. With their team of experienced auditors and consultants, they provide valuable insights and recommendations to improve business operations and financial management. Their commitment to integrity, professionalism, and customer satisfaction sets them apart in the industry. If you're looking for an audit partner that can help you achieve your business goals, PKC Management Consulting is the right choice. Contact them today to learn more about their services and how they can add value to your organization.
Practical approach to auditing is a presentation intended to help new auditors to quickly grab the skills and approach to audit engagements. The material touched on the attributes of auditors, audit planning, work programmes, audit journaling, working papers, audit test procedures, compliance and substantive test, elements of an audit report, file referencing etc..
Presentation från GRC 2014 den 15 maj. Kontakta gärna talaren om du har några frågor. Hela schemat för eventet hittar du här: http://www.transcendentgroup.com/sv/har-har-du-hela-schemat-for-grc-2014/
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Revolutionising Reporting: Why Care? is the first in the Future Directions series of the future[inc]. Developed out of a series of meetings globally and two stakeholder events with a range of directors, investors and practitioners held in Auckland and Sydney in March.
There are historic changes coming in what the financial statement auditor will say publicly in their report. For listed entities there will be a section where the auditor explains the main areas they looked at in their audit of that company for the year, and a summary of the audit procedures they undertook to address the matter.
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This is being turned on its head! The increasing demands for transparency of process, to help justify trust, has led to the introduction, for the first time, of unique commentary in the audit report to shareholders. A major change to market communication.
These new requirements will be effective from December 2016 year end’s, though many firms and companies will be trialling it this year. Download your copy.
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what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Practical Ways to Improve the Exercise and Documentation of Professional Scepticism in an ISA Audit
1. Practical Ways to Improve the
Exercise and Documentation of
Professional Scepticism in an ISA
Audit
May 2013
2. 2 | May 2013
This paper was prepared by Auditing and Assurance staff at the Chartered Professional
Accountants of Canada and the Institute of Chartered Accountants in Australia. It has
not been adopted, endorsed, approved or otherwise acted on by the Canadian Auditing
and Assurance Standards Board or any other committee or board of the Chartered
Professional Accountants of Canada and the Institute of Chartered Accountants in
Australia.
Practitioners are expected to use professional judgment in determining whether and
how to apply the suggestions contained in this paper.
Questions or comments on this document should be sent to:
Gregory P. Shields, CPA, CA
Director, Auditing and Assurance Standards
Chartered Professional Accountants of Canada
277 Wellington Street West
Toronto, ON
Canada M5V 3H2
Tel. +1 (416) 204-3287
gshields@cpacanada.ca
Liz Stamford, FCA
Head of Audit Policy
Institute of Chartered Accountants in Australia
33 Erskine Street
Sydney, NSW
Australia 2000
Tel. +61 (2) 8078-5426
liz.stamford@charteredaccountants.com.au
3. 3 | May 2013
Table of Contents
Introduction and purpose of the paper 4
Key questions in developing a practical approach to enhancing professional
scepticism 5
How the approach set out in this paper can enhance the exercise and
documentation of professional scepticism 7
Overview of the approach 8
Concluding comments 9
Appendix A: Professional scepticism question series 10
A. Enhancing professional scepticism during preliminary engagement activities and
planning the engagement 11
B. Enhancing professional scepticism during the engagement 12
C. Enhancing professional scepticism near the end of the engagement 15
Appendix B: Illustration of a team planning discussion worksheet 17
4. 4 | May 2013
Introduction and purpose of the paper
A high-quality audit requires the exercise of professional judgment by the auditor and a
mindset of professional scepticism. Because it is part of the auditor’s mindset,
professional scepticism depends on the personal behavioural traits of those involved in
the audit and is influenced by such things as the motivation, competencies, education,
training and experience of each auditor.
The International Standards on Auditing (ISAs) note that professional scepticism is
necessary to the critical assessment of audit evidence. This includes questioning
contradictory audit evidence and the reliability of documents and responses to inquiries
and other information obtained from management and those charged with governance.
It also includes consideration of the sufficiency and appropriateness of audit evidence
obtained in light of the circumstances.
Evidencing the exercise of professional scepticism is critical in demonstrating that the
audit was planned and performed in accordance with ISAs.
Audit inspectors throughout the world have expressed concern about whether
professional scepticism is being applied properly in practice. For example, they have
commented that some auditors have:
• not responded appropriately in circumstances when inconsistent or contradictory
audit evidence was obtained;
• been over-reliant on management representations;
• sought audit evidence to corroborate rather than challenge management’s
assertions; or
• accepted unreliable audit evidence as being sufficient and appropriate.
The ISAs require the auditor to prepare sufficient audit documentation to enable an
experienced auditor, having no previous connection with the audit, to understand,
among other things:
• the results of the audit procedures performed and the audit evidence obtained; and
• significant matters arising during the audit, the conclusions reached thereon and
significant professional judgments made in reaching those conclusions.
Further, if the auditor identified information that is inconsistent with the auditor’s final
conclusion regarding a significant matter, the auditor must document how the auditor
addressed the inconsistency.
5. 5 | May 2013
The ISAs note that there may be no one way in which the auditor’s professional
scepticism is documented. Nevertheless, the audit documentation may provide
evidence of the auditor's exercise of professional scepticism in accordance with the
ISAs. Such evidence may include specific procedures performed to corroborate
management's responses to the auditor's inquiries.
The purpose of this paper is to provide one practical approach for practitioners to
enhance the exercise of professional scepticism in an audit of financial statements and
reflect this in the audit documentation.
The topic of professional scepticism can be scoped very broadly. This paper does not
attempt to address all matters. For example, the paper excludes actions that might be
taken at the firm level that could foster and enhance the exercise of professional
scepticism, such as through recruitment, formal training, incentive mechanisms, or
performance evaluations. The paper is developed in the context of an engagement
team made up of members with varying experience, training and professional
scepticism. Those encountering other aspects, such as a sole practitioner, or group
audit situations involving group and component auditors, may find the suggestions in
this paper useful in addressing their circumstances.
Key questions in developing a practical
approach to enhancing professional scepticism
Do the different roles played by persons involved in the
engagement affect how they exercise professional scepticism?
Members of the engagement team, and others providing assistance on the audit, do
have different roles in relation to exercising professional scepticism. For example:
• The engagement partner. The engagement partner sets the tone for the
engagement, including the exercise of professional scepticism. The engagement
partner brings extensive experience to bear in assessing whether professional
scepticism was exercised appropriately throughout the audit by other members of
the engagement team, as well as by experts and consultants who have provided
input to the engagement.
• Those who perform a review function during the audit, such as audit supervisors or
managers. Audit supervisors have the experience to challenge the work performed
by more junior staff and assist in integrating the findings of different engagement
team members.
• Those who are responsible for performing audit procedures and gathering audit
evidence. Although less experienced, such team members face multiple
opportunities during an audit to appropriately exercise professional scepticism.
6. 6 | May 2013
• Auditor’s experts and consultants who provide input to the engagement team.
Communications with experts and consultants, and review of their work, takes into
account that not all experts and consultants will necessarily have the same
education, training and experience as members of the engagement team in
exercising professional scepticism.
• The engagement quality control reviewer. The engagement quality control reviewer
provides an objective evaluation of the significant judgments made by the
engagement team and conclusions reached. They are in a key position to
determine whether professional scepticism was appropriately exercised by the
engagement team.
What actions can be taken to enhance the exercise of professional
scepticism during an engagement?
The four elements of professional scepticism set out in paragraph A18 of ISA 200,
Overall Objectives of the Independent Auditor and the Conduct of an Audit in
Accordance with International Standards on Auditing, address this issue. The paragraph
states that professional scepticism includes being alert to:
• audit evidence that contradicts other audit evidence obtained;
• information that brings into question the reliability of documents and responses to
inquiries to be used as audit evidence;
• conditions that may indicate possible fraud; and
• circumstances that suggest the need for audit procedures in addition to those
required by the ISAs.
How can professional scepticism be better demonstrated in an
engagement?
Because professional scepticism is influenced by personal behavioral traits and
individual competence, demonstrating how professional scepticism was exercised is
often problematic in an engagement. This paper suggests how documentation might be
enhanced to more clearly demonstrate how professional scepticism was exercised by
those involved in the engagement throughout the engagement.
7. 7 | May 2013
How the approach set out in this paper can
enhance the exercise and documentation of
professional scepticism
There are many reasons why there may be an actual or perceived lack of professional
scepticism exercised on some engagements. The following are challenges to enhancing
the exercise and documentation of professional scepticism at the engagement level and
provide a basis for the approach set out in this paper:
• Establishing a clearer link between the exercise of professional scepticism and the
sufficiency and appropriateness of evidence obtained. Actions taken during the
engagement may demonstrate professional scepticism but are not necessarily
documented because they are considered not to be contributing to sufficient
appropriate audit evidence. The approach in this paper encourages the
documentation of these actions.
• Exercising professional scepticism throughout the engagement. Professional
scepticism needs to be exercised throughout the engagement but may not always
be top of mind. To promote this mindset, frequent stand-back reviews during all
phases of the engagement by all members of the engagement team are suggested.
• Establishing effective interaction among senior and junior staff in exercising
professional scepticism. Senior engagement personnel may not understand how to
encourage the exercise of professional scepticism by junior staff. The approach in
this paper may help reinforce the role of senior personnel in this respect.
• Ensuring that the benefits of the additional documentation of the exercise of
professional scepticism outweigh related costs. The ISAs and International
Standard on Quality Control 1 (ISQC 1), Quality Control for Firms that Perform
Audits and Reviews of Financial Statement, and Other Assurance and Related
Services Engagements, already contain extensive documentation requirements. On
the cost side, documentation of professional scepticism suggested in this paper is
intended to be integrated, where practicable, with existing documentation that
complies with the ISAs without creating a significant additional documentation
burden. On the benefits side, this paper suggests documenting specific actions that
demonstrate the exercise of professional scepticism to facilitate quality control
reviews and audit inspections. It avoids the use of boilerplate or trite phrases (e.g.,
“I have been professionally skeptical”) that do little to obtain sufficient appropriate
audit evidence.
8. 8 | May 2013
• Establishing a feedback loop from the exercise of professional scepticism on
individual engagements to the firm’s overall initiatives to improve professional
scepticism. Firms often provide staff training on professional scepticism but it is
difficult to gauge how effective such training was in practice. The approach in this
paper may help strengthen the understanding of those involved in the engagement
of how to apply that training in practice and provide useful feedback to improve
such training.
Overview of the approach
This paper sets out a series of questions that were developed for different phases of the
engagement. The questions are based on the four elements of professional scepticism
noted above and are designed to reflect the different roles and levels of those involved
in an engagement.
The suggested questions are generally open ended to promote responses that
demonstrate how professional scepticism was exercised in the engagement.
Considerations and examples elaborate on the questions presented. Suggestions are
also made as to how the responses to the questions posed may be documented.
There are different ways of incorporating the questions and the related responses into
audit documentation. One approach might involve the preparation of individual self-
review questionnaires that would be integrated to readily enable reviewers obtaining an
overall understanding of how professional scepticism was exercised in the audit and drill
down to any level of detail they consider appropriate. The Professional Scepticism
Question Series examples can form the basis of these self-review questionnaires.
There are advantages and disadvantages with this approach. On the one hand, it would
require additional documentation. On the other hand, this documentation may be more
effective than other approaches in focusing attention to the exercise of professional
scepticism, particularly in high risk areas of the audit where the exercise of professional
scepticism is critical.
Another approach might be to incorporate the questions into other existing forms or
worksheets used in the engagement. The paper provides an illustration of a Team
Planning Discussion Worksheet, which incorporates a section (section 6) dealing with
professional scepticism. Such an approach would avoid significant additional
documentation. However, it would require adaptation of existing forms and worksheets.
These are just two possible approaches to documenting the exercise of professional
scepticism and other approaches are possible. Each audit firm would need to develop
its own approach based on its circumstances and recognizing the challenges to
enhancing the exercise and documentation of professional scepticism identified in this
paper.
9. 9 | May 2013
Concluding comments
This paper proposes practical ways in which the exercise of professional scepticism can
be enhanced in an audit of financial statements and reflected in audit documentation by
setting out a series of questions for different phases of the engagement. Practical
experience of using the questions may enable the questions to be refined and assist in
identifying the best means of demonstrating the exercise of professional scepticism in
an effective manner.
10. Professional Scepticism Question Series: Preliminary and Planning 10 | May 2013
Appendix A:
Professional Scepticism Question Series
This section contains questions that may be asked by the respective individuals involved in an audit
engagement during different phases of the engagement.
The questions are generally phrased as open questions to encourage other than Yes/No responses.
Considerations and examples elaborate on the questions presented. Suggestions are made as to how the
responses to the questions posed may be documented.
11. Professional Scepticism Question Series: Preliminary and Planning 11 | May 2013
A. Enhancing professional scepticism during preliminary engagement activities
and planning the engagement
A: Questions for the engagement partner and other key engagement team members to consider
1. What actions to eliminate threats to independence, or reduce them to an acceptable level, were taken that
will enhance the professional scepticism of the team?
2. What factors may affect the ability of the engagement team to exercise appropriate professional scepticism
during the audit?
3. How has the direction, supervision and performance of the engagement been planned to promote the
application of professional scepticism by all of the team?
4. How have areas where the use of professional scepticism will be critical to the audit been communicated
to the engagement team?
Examples of actions to take in answering the questions
• Facilitate planning meetings that include a focus on the appropriate exercise of professional scepticism.
o Explain what is meant by professional scepticism and how it applies to this engagement.
o Foster discussion among team members that allows less experienced members to raise questions in a
non-threatening environment.
o Ensure all team members understand the objectives of the assigned work, including those aspects of
their particular assignments where professional scepticism is likely to be most important.
o Identify the types of circumstances when less-experienced team members must consult on a timely
basis with more experienced team members.
o Explain how audit evidence obtained by individual team members will be aggregated and integrated
and the importance of communication and cooperation in exercising professional scepticism.
o Identify whether there are aspects of the audit of the prior year where, in retrospect, there is scope to
improve the exercise of professional scepticism.
• Discuss the relationship of the engagement team with management and client staff for the particular
engagement, including:
o how to balance the need to keep an appropriate working relationship with the client while maintaining a
questioning mind; and
o whether there are matters particular to this audit that need to be taken into account in dealing with
client personnel; for example, should only senior engagement team members deal with certain client
employees who are perceived as posing an intimidation threat to junior engagement staff?
• Identify the higher risk areas of the audit that should be undertaken as early on as practicable in the audit
so that time pressures near the end of the engagement will not adversely affect the exercise of
professional scepticism. Such areas may be identified from the planning process, prior audits of the entity,
or from audits of similar entities and related audit inspection reports that identify professional scepticism
implications. Such areas may include valuations, going concern or related party transactions.
Suggestions on how responses may be documented
Questions A:1-4 and responses may be documented by way of a Preliminary Engagement Professional
Scepticism Questionnaire (using the questions as a base) that is completed when documenting compliance
with paragraphs 11, 14 and 15(a) of ISA 220, Quality Control for an Audit of Financial Statements, and
paragraph 5 of ISA 300, Planning an Audit of Financial Statements.
12. Professional Scepticism Question Series: During Engagement 12 | May 2013
B. Enhancing professional scepticism during the engagement
B1: Questions for the individuals performing audit procedures and gathering audit evidence to consider
1. What reasonable alternatives other than those put forward by management have I considered?
2. What evidence have I obtained that supports management’s assertions and what evidence does not support
those assertions?
3. Does the evidence I have obtained integrate with that obtained in other areas of the audit?
4. How have I responded to identified discrepancies or inconsistencies?
5. How do I know that the audit evidence I have obtained is reliable?
6. What were the results of my stand-back review before concluding on the procedures performed and the
evidence obtained?
7. What is my basis for concluding on the sufficiency and appropriateness of the evidence I have obtained?
Examples of actions to take in answering the questions
• Obtain and apply an objective viewpoint in considering all reasonable alternatives. Management may have a
biased view of possible alternatives. The extent to which alternatives need to be considered may be affected
by matters such as:
o the significance of the risks being addressed;
o whether the alternatives put forward by the client are consistent with those of previous periods;
o whether there are alternatives that management identified but rejected without apparent good reason;
o whether there are alternatives not considered by management;
o the complexity or subjectivity of the matter indicating the need to consult with more experienced
engagement team members, consultants within the firm, or auditor’s experts; and
o the auditor’s previous experience with similar items.
• Use inquiry techniques that recognize the possibility of different perspectives on an issue and give
appropriate consideration to each. The auditor may obtain audit evidence that supports but also evidence
that contradicts management’s assertions.
• Consider whether evidence obtained in other areas of the audit either corroborates or is inconsistent, and
resolve significant inconsistencies. It may be necessary to consult with senior members of the engagement
team to help identify and/or resolve inconsistencies in evidence obtained. Resolution may require a change
in the management’s position, which may need to be escalated to the engagement partner for discussion
with management and those charged with governance.
• Where practicable, develop the auditor’s own expectation of the outcome of the procedure before performing
it. This enables the auditor to avoid being biased by the initial position taken by management. Identified
discrepancies or inconsistencies may affect the auditor’s assessment of the risks of material misstatement
and other planned audit procedures. Conditions that indicate possible fraud need to be brought to the
attention of the audit supervisor/manager.
• Be alert for circumstances when audit evidence may have been tampered with (e.g., evidence obtained
electronically in an unsecured manner). Representations from management on their own do not provide
sufficient appropriate audit evidence about a matter.
13. Professional Scepticism Question Series: During Engagement 13 | May 2013
B1: Questions for the individuals performing audit procedures and gathering audit evidence to consider
Examples of actions to take in answering the questions (continued)
• Stand back at appropriate times in performing each audit procedure and ask “Am I missing something?” In
particular, a stand back helps in assessing why other alternatives were rejected.
• Consider the sufficiency and appropriateness of audit evidence in relation to the risk of material
misstatement and potential impact on shareholders. Do you have sufficient appropriate audit evidence to be
able to conclude on management’s assertions such as existence, completeness and valuation?
Suggestions on how responses may be documented
Questions B1:1-7 and responses may be documented by way of a Staff Professional Scepticism Self-Review
Questionnaire (using the questions as a base) when meeting the documentation requirements in paragraph 8 of
ISA 230, Audit Documentation.
14. Professional Scepticism Question Series: During Engagement 14 | May 2013
B2: Questions for individuals performing a supervision or review function (the audit
supervisor/manager) to consider
1. To what extent do the conclusions reached accord with my own expectations?
2. How do I know that staff reached conclusions in an unbiased manner?
3. To what extent is the audit evidence obtained sufficient and appropriate in relation to the assessment of the
risks of material misstatement?
4. How were inconsistencies or contradictions identified and appropriately resolved?
5. To what extent have any implications for other aspects of the audit been identified and communicated to
those responsible and where are they evidenced?
6. Has my stand-back review of the audit work performed identified anything that is not appropriately
documented in the file?
7. What support do I have to conclude on the sufficiency and appropriateness of the evidence obtained? For
example, am I satisfied that I have seen clear evidence to support management’s assertions such as
completeness, existence, rights and obligations, and valuation for each material item?
Examples of actions to take in answering the questions
• Challenge the conclusions reached by less-experienced team members. Such challenges will be based, for
example, on the insights and experience the supervisor has obtained from being involved in other aspects of
the audit or other audits of similar entities.
• Challenge any indication that staff has accepted the representations of management without considering the
need to corroborate them with other audit evidence. Staff may have inappropriately discounted evidence that
contradicts management’s assertions.
• Identify and resolve doubts about the reliability of audit evidence obtained, including, for example,
contradictions or inconsistencies in the audit evidence obtained that less-experienced staff may either not
have identified or not appropriately resolved through other audit procedures. For example, findings in one
area may indicate potential management bias that may need to be considered in relation to findings in other
areas of the audit, or may indicate the need to revise risk assessments and related audit procedures.
Indicators of possible fraud need to be specifically addressed. It may also be useful to rank the types of
audit evidence obtained based on various factors (e.g., relative reliability of the source of the evidence).
Suggestions on how responses may be documented
Responses to questions are often best obtained through a review of the audit working papers in conjunction with
an engaged discussion between the audit supervisor/manager and staff. Questions B2:1-7 and responses to this
discussion may be documented by way of an Audit Supervisor Self-Review Questionnaire (using the questions
as a base) and/or by enhancing the existing documentation prepared by other engagement team members (e.g.,
through preparation of additional memoranda).
The audit supervisor/manager that is responsible for a number of different aspects of an audit may need to
summarize and integrate the Audit Supervisor Professional Scepticism Self-Review Questionnaires for those
aspects of the audit into an overall summary to facilitate the engagement partner’s review of how professional
scepticism was applied in key parts of the audit.
15. Professional Scepticism Question Series: Near the End 15 | May 2013
C. Enhancing professional scepticism near the end of the engagement
C1: Questions for the engagement partner to consider
1. To what extent do the conclusions reached accord with my own expectations?
2. How have I satisfied myself that any implications for other aspects of the audit were identified and
addressed?
3. How have I satisfied myself that inconsistencies and contradictions were identified and addressed?
4. How have I satisfied myself that conditions that indicate potential for fraud were identified and addressed?
5. How have I satisfied myself that appropriate additional audit procedures were performed when warranted?
6. How have I satisfied myself that professional scepticism was applied by engagement team members in
obtaining sufficient appropriate audit evidence?
7. Have those charged with governance been informed of areas where appropriate exercise of professional
scepticism was critical in assessing the sufficiency and appropriateness of audit evidence obtained?
Examples of actions to take in answering the questions
• Challenge the conclusions reached by team members. Such challenges will be based on, for example, the
insights and experience the engagement partner has obtained from being involved in other aspects of the
audit, or other audits of similar entities.
• Perform a stand-back review of how professional scepticism was applied in key aspects of the engagement
to support the engagement partner’s conclusion that the audit opinion was supported by sufficient
appropriate audit evidence. For example, consider performing a walk-through to understand how the
engagement team has responded to significant risks and other risks of material misstatement. Such a walk-
through may involve challenging staff as to how they have applied professional scepticism during the
engagement and where this is evidenced in the file.
• Communicate with those charged with governance when the auditor has faced challenges in exercising
professional scepticism during the audit, as it may assist the audit committee fulfill its responsibility for
oversight of the financial reporting process. It may also allow those charged with governance to assist the
auditor in identifying appropriate sources of audit evidence.
Suggestions on how responses may be documented
Questions C1:1-6 and responses may be documented in an Engagement Partner Professional Scepticism Walk-
Through Questionnaire (using the questions as a base) as part of documenting compliance with paragraph 17 of
ISA 220, Quality Control for an Audit of Financial Statements.
Communicating about professional scepticism with those charged with governance may be documented when
documenting compliance with the requirements in ISA 260, Communication with Those Charged with
Governance.
16. Professional Scepticism Question Series: Near the End 16 | May 2013
C2: Questions for the engagement quality control reviewer (EQCR) to consider
1. To what extent do the significant judgments and conclusions reached by the engagement team reflect the
appropriate exercise of professional scepticism?
2. How have I satisfied myself that selected audit documentation I have reviewed related to the above matters
reflects the appropriate exercise of professional scepticism?
3. How have I satisfied myself during discussions of significant matters with the engagement partner that
professional scepticism was exercised?
Examples of actions to take in answering the questions
• In performing the quality control review required by paragraph 20 of ISA 220, Quality Control for an Audit of
Financial Statements, objectively evaluate of the significant judgments made by the engagement team and
the conclusions reached in formulating the auditor’s report, including specific consideration of whether there
is evidence that appropriate professional scepticism was exercised by the engagement team in making
those judgments.
Suggestions on how responses may be documented
Questions C2:1-3 and responses may be documented in an EQCR Professional Scepticism Questionnaire, as
part of documenting compliance with paragraph 20 of ISA 220.
17. Team Planning Discussion Worksheet 17 | May 2013
Appendix B:
Illustration of a Team Planning Discussion Worksheet
Entity Period ended
Date/time of discussion 20
Attendees
Objective: To discuss among the engagement team the susceptibility of the entity’s financial statements
to material misstatement and to develop a responsive and efficient audit strategy.
Agenda Notes and decisions reached W/P
Ref.
1 Discuss the nature of the entity, users of the financial
statements, materiality, changes in operations, key
personnel and areas to watch.
Also address:
(a) timing and scope of engagement;
(b) etc.
2 Discuss the susceptibility of the entity’s financial
statements to material misstatement due to fraud or
error. Consider:
(a) material balances and transactions;
(b) etc.
3 Identify the potential for fraud. (Consider developing
specific fraud scenarios.) Refer to step 2 above and
discussions about fraud with management. Also
consider:
(a) known instances of fraud that has occurred in the
past;
(b) etc.
4 Discuss potential audit efficiencies:
(a) reducing work performed where the risk of material
misstatement is low;
(b) etc.
18. Team Planning Discussion Worksheet 18 | May 2013
5 Discuss and agree on the overall audit strategy.
Consider:
(a) nature of risk assessment procedures required;
(b) etc.
6 Discuss the means of enhancing professional
scepticism. Consider:
(a) whether specific actions are needed to enhance
professional scepticism (e.g., has senior
engagement staff dealt with difficult client
employees);
(b) focusing on high risk areas earlier in the
engagement to avoid potential time pressures;
(c) circumstances where engagement team members
are likely to need to consult more senior team
members (e.g., when reviewing management
assumptions about complex accounting estimates);
(d) how audit evidence will be integrated across the
whole engagement team (e.g., to identify
contradictions and inconsistencies); and
(e) areas arising from planning, prior audits of the entity
or from similar entities, and related audit inspection
reports where concerns may arise about the need
for professional scepticism (e.g., when evaluating
the reliability of audit evidence).
Describe action steps arising from meeting Who is
responsible
Deadline Actual
completion
All significant matters raised during the audit planning meeting are documented above.
Reviewed by Date
Final sign-off
All matters identified for action above (action steps) were completed.
Reviewed by Date