Professional Skepticism: Creating a Mindset for Finding Fraud and Error

Learning Objectives

• To discuss the traits of a skeptical auditor.
• To explain how to apply professional skepticism to any assurance service.
• To describe fraud, including examples of fraud indicators.
• To discuss the auditor’s responsibility for identifying and responding to fraud in a financial statement audit.
• To analyze tips for maintaining professional skepticism.

Course Description

The public places high-value assurance services provided by an external public accountant, as the CPA’s involvement directly enhances the degree of confidence intended users can place on the financial statements to make economic decisions. 

A proper mindset, including professional skepticism, is a critical feature of a high-quality audit or other attest service. Professional skepticism is an essential attitude that enhances the ability to identify and respond to conditions that may indicate possible material misstatement, whether due to fraud or error. Meeting the requirement of applying professional skepticism during an audit is often quite a challenge. However, it is an expected skill that auditors must master if they want to produce valuable audits.

Professional skepticism is influenced by personal behavioral traits as well as the knowledge level of the individuals undertaking the audit. A proper mindset, including professional skepticism, is a critical feature of a high-quality audit or other attest service. It is an essential attitude that enhances the ability to identify and respond to conditions that may indicate possible material misstatement, whether due to fraud or error.

The following are the major topics covered in this CPE webinar:

• Understand the importance of professional skepticism.
• Recognize specific fraud responsibilities in a financial statement audit.
• Applying Professional Skepticism.
• Auditors' Responsibility for Noncompliance.
• Tips for Maintaining Professional Skepticism.

This CPE Auditing webinar will give you an overview of professional skepticism so that you can sharpen this necessary skill.

If you are interested in audit courses, you might be interested in following Jennifer Louis. She specializes in Accounting and Auditing training, and Audit process consulting. 

Overview

• Key points about professional skepticism

  4 mins
• Quality control measures for compliance

  15 mins
• Important audit documentation point!

  27 mins
• Circumstances that lead to auditor failure to appropriately comply

  49 mins
• International standards on Auditing - Fraud defined

  69 mins
• WorldCom fraudulent financial reporting

  85 mins