Having Professional Scepticism is essential in the audit process and is a skill that every auditor should have.
Professional Scepticism and professional judgement are intimately connected to one another. Both are essential to the proper conduct of the audit and are key inputs to audit quality.
Professional Scepticism makes it easier for auditors to use their professional judgement appropriately, especially when it comes to making conclusions about issues such as the following:
The nature, timing and extent of audit procedures to be performed;
whether or not sufficient acceptable audit evidence has been acquired, and whether or not additional work is required in order to accomplish the requirements of the ISAs.
The assessment of the judgments made by management in the course of applying the applicable financial reporting framework
The drawing of conclusions based on the audit evidence obtained, for example, assessing the reasonableness of the estimates made by management in preparing the financial statements
The use of Professional Scepticism improves the efficiency of an audit procedure and the application of that procedure, and it reduces the likelihood that an auditor will:
choose an inappropriate audit procedure,
incorrectly apply an appropriate audit procedure, or
incorrectly interpret the audit results.