Professional scepticism – NBC Institute

AAA – Nov 2018 – L3 – Q5 – Ethical Issues in Auditing

Examining professional skepticism, its necessity across audit stages, and its application in audits.

Question

As a result of recent global financial crises, audit inspection reports in various jurisdictions have noted areas requiring professional judgment. Such areas include fair value, related party transactions, and going concern assessments, where regulators and oversight bodies believe that auditors should clearly demonstrate professional scepticism.

Required:

a. Explain the term “Professional Scepticism.” (3 Marks)

b. Identify the stages in the audit process where professional scepticism is necessary. (3 Marks)

c. Discuss three ways in which the application of professional scepticism can be demonstrated by the auditor. (9 Marks)

Answer

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Tags: Audit Judgment, Audit Process, Fair Value, Going Concern, Professional scepticism, Related Party Transactions
Level: Level 3

Topic: Ethical Issues in Auditing

AA – Nov 2019 – L2 – Q6 – Ethical Issues in Auditing

Explain the concepts of acting in the public interest, professional scepticism, and fundamental ethical principles for accountants.

Question

A whistleblower reported to a regulator a misstatement in the financial statements of Koko Limited on overstated expenses and overvaluation of inventory.

An informed shareholder at the Annual General Meeting, while commenting on the company’s financial statements, stated that the company directors should always act in the public interest.

Required:
Explain:
a. “Acting in the public interest” (6 Marks)
b. Professional scepticism (4 Marks)
c. The fundamental principles a professional accountant should comply with (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ethical Principles, Professional scepticism, Public Interest
Level: Level 2

Topic: Ethical Issues in Auditing
Series: NOV 2019

AAA – May 2019 – L3 – Q3b – Assurance services

Discuss the matters to include in training material on professional scepticism in audit based on IAASB guidelines

Question

You are the audit manager in charge of training in one of the audit firms in Ghana. The Institute of Chartered Accountants (Ghana) invited you to be a resource person of a Continuing Professional Development (CPD) programme to be organised. You are to talk on Professional Scepticism in an audit of Financial Statements.

Required:
Identify and discuss the matters that you will include in your training material.
NB: Your answer should consider the IAASB Q & A paper on professional scepticism.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit quality, Financial audit, IAASB, Professional scepticism
Level: Level 3

Topic: Assurance services
Series: MAY 2019

AAA – Nov 2018 – L3 – Q5 – Ethical Issues in Auditing

Examining professional skepticism, its necessity across audit stages, and its application in audits.

Question

Required:

a. Explain the term “Professional Scepticism.” (3 Marks)

b. Identify the stages in the audit process where professional scepticism is necessary. (3 Marks)

c. Discuss three ways in which the application of professional scepticism can be demonstrated by the auditor. (9 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Judgment, Audit Process, Fair Value, Going Concern, Professional scepticism, Related Party Transactions
Level: Level 3

Topic: Ethical Issues in Auditing

AA – Nov 2019 – L2 – Q6 – Ethical Issues in Auditing

Explain the concepts of acting in the public interest, professional scepticism, and fundamental ethical principles for accountants.

Question

A whistleblower reported to a regulator a misstatement in the financial statements of Koko Limited on overstated expenses and overvaluation of inventory.

An informed shareholder at the Annual General Meeting, while commenting on the company’s financial statements, stated that the company directors should always act in the public interest.

Required:
Explain:
a. “Acting in the public interest” (6 Marks)
b. Professional scepticism (4 Marks)
c. The fundamental principles a professional accountant should comply with (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ethical Principles, Professional scepticism, Public Interest
Level: Level 2

Topic: Ethical Issues in Auditing
Series: NOV 2019

AAA – May 2019 – L3 – Q3b – Assurance services

Discuss the matters to include in training material on professional scepticism in audit based on IAASB guidelines

Question

Required:
Identify and discuss the matters that you will include in your training material.
NB: Your answer should consider the IAASB Q & A paper on professional scepticism.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit quality, Financial audit, IAASB, Professional scepticism
Level: Level 3

Topic: Assurance services
Series: MAY 2019

Question Tag: Professional scepticism

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AAA – Nov 2018 – L3 – Q5 – Ethical Issues in Auditing

Examining professional skepticism, its necessity across audit stages, and its application in audits.

AA – Nov 2019 – L2 – Q6 – Ethical Issues in Auditing

Explain the concepts of acting in the public interest, professional scepticism, and fundamental ethical principles for accountants.

AAA – May 2019 – L3 – Q3b – Assurance services

Discuss the matters to include in training material on professional scepticism in audit based on IAASB guidelines

AAA – Nov 2018 – L3 – Q5 – Ethical Issues in Auditing

Examining professional skepticism, its necessity across audit stages, and its application in audits.

AA – Nov 2019 – L2 – Q6 – Ethical Issues in Auditing

Explain the concepts of acting in the public interest, professional scepticism, and fundamental ethical principles for accountants.

AAA – May 2019 – L3 – Q3b – Assurance services

Discuss the matters to include in training material on professional scepticism in audit based on IAASB guidelines

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Question Tag: Professional scepticism

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AAA – Nov 2018 – L3 – Q5 – Ethical Issues in Auditing

Examining professional skepticism, its necessity across audit stages, and its application in audits.

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AA – Nov 2019 – L2 – Q6 – Ethical Issues in Auditing

Explain the concepts of acting in the public interest, professional scepticism, and fundamental ethical principles for accountants.

You're reporting an error for "AA – Nov 2019 – L2 – Q6 – Ethical Issues in Auditing"

AAA – May 2019 – L3 – Q3b – Assurance services

Discuss the matters to include in training material on professional scepticism in audit based on IAASB guidelines

You're reporting an error for "AAA – May 2019 – L3 – Q3b – Assurance services"

AAA – Nov 2018 – L3 – Q5 – Ethical Issues in Auditing

Examining professional skepticism, its necessity across audit stages, and its application in audits.

You're reporting an error for "AAA – Nov 2018 – L3 – Q5 – Ethical Issues in Auditing"

AA – Nov 2019 – L2 – Q6 – Ethical Issues in Auditing

Explain the concepts of acting in the public interest, professional scepticism, and fundamental ethical principles for accountants.

You're reporting an error for "AA – Nov 2019 – L2 – Q6 – Ethical Issues in Auditing"

AAA – May 2019 – L3 – Q3b – Assurance services

Discuss the matters to include in training material on professional scepticism in audit based on IAASB guidelines

You're reporting an error for "AAA – May 2019 – L3 – Q3b – Assurance services"

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