Updated: Jul 3
Auditors often show Professional Skepticism during audit conversations.
The auditor's discussion with TCWG may explain why a substantial accounting practice permissible under the applicable financial reporting framework is not most suited for the entity.
审计师与 TCWG 的讨论可能会解释为什么在适用的财务报告框架下允许的实质性会计做法却不是该实体最适合的。
Audit documentation is essential for demonstrating Professional Skepticism since it shows that the audit was planned and completed according to ISAs and other legal and regulatory requirements.
The ISAs require the auditor to prepare adequate audit documentation to allow an experienced auditor with no prior connection to the audit to understand, among other things, significant audit matters, conclusions, and judgments.
The ISAs also require auditors to document discussions with management, TCWG, and others, detailing the nature of the significant matters discussed, when, and with whom.
Such documentation helps the auditor show how significant judgments and key audit concerns were addressed and whether sufficient and relevant audit evidence was acquired.
When matters and judgments are important, it is important to prepare audit documentation, such as in the following situations:
The significant decisions made by the project team regarding the likelihood of fraud resulting in a material misstatement in the entity's financial statements and their communications with management, the TCWG, regulators and others regarding fraud issues.
Known or suspected non-compliance with laws and rules, as well as the results of discussions with management, TCWG, and other parties outside the entity.
The basis for the auditor's conclusions about the reasonableness of accounting estimates, their disclosures that give rise to significant risks, and any indicators of possible management bias.
Identified information that doesn't fit with the auditor's conclusion about a significant matter and how that inconsistency was handled.
The basis for the auditor's conclusions on the reasonableness of areas of subjective judgments.
The auditor's conclusion about a document's authenticity when further investigation (such as using an expert or confirmation procedures) is done in response to audit conditions that led the auditor to assume the document may not be legitimate.
Since Professional Skepticism is a state of mind, it can be challenging to show how the auditor utilised it during the audit.
ISAs remark that no single mechanism exists to document an auditor's Professional Skepticism.
However, Audit documentation may show the auditor's ISA-compliant Professional Skepticism, such evidence may include measures performed to substantiate management's responses to the auditor's inquiries.
由于 "职业怀疑论 "是一种心态，因此如果要显示审计师在审计过程中是如何利用这种心态，这会是一个非常大的挑战。