The UK Auditing Practices Board (APB), Professional Oversight Board and Audit Inspection Unit (AIU) have issued a paper that emphasises the importance of scepticism to audit quality.
Auditor scepticism: Raising the bar draws on recent research into what actions are needed to ensure an appropriate degree of scepticism is applied by auditors.
The APB said professional scepticism is a crucial component of a high quality audit that encompasses every aspect of the auditor’s judgement.
“We believe that the time is right for an informed discussion about the right level of scepticism to be applied by auditors and the conditions that foster appropriate sceptical behaviour, APB chairman Richard Fleck said.
“The AIU [also] emphasised that close attention must be applied to scepticism in its recent annual report. We hope this paper will lead to a full discussion within the profession.”
The APB has requested comments be submitted by 31 October 2010.