Ishwin Kaur
Professional Skepticism
It is a word with which every CA Aspirant is well - versed with. The Heart Of Audit - Professional Skepticism simply means having a questioning mind. It means being aware and alert of anything and everything, that may indicate possible misstatement due to error or fraud.
Not just a questioning mind, but professional skepticism also involves a critical assessment of the audit evidence. It includes being alert to any audit evidence that contradicts the other audit evidence obtained, conditions that might indicate fraud, circumstances that suggest additional audit procedures, or any information that questions the reliability of documents.
With due regard, undoubtedly, maintaining a high professional skepticism throughout the audit is necessary for an auditor. But is it just for audits?
Well, to the best of my knowledge, I believe that Professional Skepticism is not just necessary for audits, but plays a crucial role in our lives too.
For example - If you are walking on a road, you are expected to be well aware of your surroundings, of the vehicles on the road, of the signs displayed, and of the people moving on the road. But what if, you walk carelessly and ignorantly? You might get hurt, or in the worst cases, end up in the hospital due to negligence.
So, did you need Professional Skepticism here? Yes. How? You just needed to be alert and aware.
Let's take another example - You are given a project to be completed by your senior. Now, what do you expect? Just to complete the project or have a questioning mind, check all the requirements of the project with due diligence and alertness, and then submit it to the senior? Of course, the 2nd one.
So in everything that you do, you are expected to possess Professional Skepticism in life. So that there are the least chances of any occurrence of errors or fraud, not just in an audit, but also in life. Remember, the goal is not just to pass the exam of your course, but to clear all exams of life with flying colors.
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