The Public Company Accounting Oversight Board (PCAOB) has published its tenth staff audit practise alert, entitled "Maintaining and Applying Professional Skepticism in Audits". The alert reminds auditors of their requirement to exercise professional scepticism throughout their audits.
PCAOB standards define professional scepticism as "an attitude that includes a questioning mind and a critical assessment of audit evidence", qualities which the PCAOB says it continues to observe being inadequately displayed by auditors.
The timing of the alert was intended to assist audit firms in the upcoming calendar year-end focus on the importance of professional scepticism. The PCAOB is exploring the possibility of additional actions that might meaningfully enhance auditor’s professional scepticism.
James R. Doty, PCAOB chairman said "Investors depend on independent audits to provide a meaningful check on the financial statements prepared by company management.
"Without professional scepticism, the audit cannot serve that essential function."
Related link
Public Company Accounting Oversight Board
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
