• Register
Return to: Home > News > Standards > Standard setters publish joint report on the need for more professional scepticism

Standard setters publish joint report on the need for more professional scepticism

The International Auditing and Assurance Standards Board (IAASB), the International Ethics Standards Board for Accountants (IESBA), and the International Accounting Education Standards Board (IAESB) have jointly published a report on enhancing professional scepticism.

The report Toward Enhanced Professional Skepticism noted that the importance of enhanced professional scepticism is underscored by the increasing complexity of business and financial reporting. This included the greater use of estimates and management judgment, business model changes due to technological developments, and the fundamental reliance of the public on dependable financial reporting. The report stated that professional scepticism is at the heart of a quality audit.

There were seven key observations in the report on what is important for professional scepticism;

  • Increased attention to business acumen
  • Environmental factors can influence ability
  • Awareness of personal traits and biases
  • Building in professional scepticism from the outset is key
  • The three standard setting boards can do more in the immediate and the longer term
  • Other aspects apart from audit underlying professional scepticism may be relevant to all professional accountants
  • Standard setting alone will not be enough

Top Content

    IRBA: taking transparency to the next level

    Bernard Agulhas, chief executive officer at the Independent Regulatory Board for Auditors (IRBA), talks to Joe Pickard about the introduction of mandatory audit firm rotation, and the future of the Big Four in South Africa

    read more

    Sustainable investment: Accountants hold the key

    The US Institute of Management Accountants has a plan to remind professionals that they have the skills to take leadership roles in ESG investing. Carlos Martin Tornero writes

    read more

    IASB: progress towards global standards

    In an extract from a speech given at the Accounting Standards Board of Japan conference in Tokyo, Hans Hoogervorst looks at a possible return of the amortisation of goodwill to IFRS, and the standards’ progress in Japan

    read more

    IMA: developing diversity

    At the end of the July, the Institute of Management Accountants (IMA) appointed Linda Devonish-Mills as its first director of diversity and inclusion. Joe Pickard discusses with her what she plans to do in her new role

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.