Audit and Assurance Practice Exam 2026 – Complete Prep Resource

Professional skepticism is a fundamental principle for auditors and involves maintaining a questioning mind and performing a critical assessment of audit evidence. This mindset is essential in identifying potential misstatements and ensuring that the auditor does not simply accept information at face value.

In practice, professional skepticism means being open to the possibility that the evidence might contradict client representations and being prepared to investigate further when there are indications that the information may not be reliable. This critical assessment helps auditors make more informed decisions and ensures that they gather sufficient and appropriate evidence before arriving at conclusions.

The other options do not accurately reflect the essence of professional skepticism. Believing in client representations or assuming that all information is accurate goes against the purpose of skepticism, which is to question and verify. While being critical is part of skepticism, being overly critical can lead to biased conclusions and may disrupt the necessary balanced assessment of evidence. Thus, having a questioning mind coupled with critical assessment of evidence is vital to the auditing process.