Translated from Spanish to English - www.onlinedoctranslator.

com

FACULTY OF BUSINESS
ACCOUNTING SCHOOL

ACADEMIC REPORT

COURSE:
FINANCIAL AUDITING

AUTHOR:

AREVALO FLORES LESLIE ANETTE

TEACHER:

RIVERA ZAPATA CARLOS ALBERTO

Headquarters - Peru

(2023)

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INDEX

 INTRODUCTION

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I. INTRODUCTION
In auditing, professional skepticism is a key pillar to ensure the integrity
and reliability of financial information. As professionals in charge of
examining and evaluating the financial statements of a company,
auditors must have a critical and analytical approach to their work,
questioning the Statements made by management and those charged
with governance.
Professional audit skepticism involves maintaining a questioning and
objective mindset in which auditors do not accept claims that are not
carefully evaluated and supported by substantial verifiable evidence. The
purpose of this skepticism is to reduce the risk of accounting errors or
fraud and to protect the interests of users of financial information, such
as investors, lenders, and other interested parties.
In this research paper, we will focus on exploring and analyzing the
central role of professional skepticism in the field of auditing. We will
examine how auditors use this critical methodology in their work, the
tools and techniques used to question and evaluate financial information,
and the challenges they face in maintaining skepticism in a complex and
changing environment.
Through this investigation, we will examine real cases of financial
misconduct and corporate scandals where a lack of professional
skepticism led to disastrous consequences. We review the lessons
learned from these cases and emphasize the importance of evidence-
based skepticism and a risk-based approach. In addition, we review
professional standards and regulations related to audit skepticism, such
as standards issued by regulatory authorities and guidance from
professional organizations. We will examine how these guidelines
encourage skepticism and will identify the responsibilities and obligations

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 of auditors to perform a rigorous and objective evaluation of financial
statements. The purpose of this research paper is to highlight the
importance and impact of professional skepticism in auditing and to
stimulate reflection on how auditors can improve their ability to question
and evaluate financial information effectively. In doing so, we seek to
promote transparency, trust and integrity in the field of auditing and thus
contribute to the protection of investors' interests and the proper
functioning of financial markets.

II. DEVELOPMENT

CONCEPT:
Professional skepticism is behavior that includes the ability to critically assess
the adequacy and sufficiency of audit evidence, which includes information that
supports and confirms statements made by management, as well as
information that contradicts them. In addition, it includes the ability to identify
and respond to instructions about material irregularity, draw the appropriate
conclusions from the data collected, and always carry professional
responsibility.
Professional Skepticism is defined in ISA 200 as an "attitude that implies
a questioning mindset, careful attention to circumstances that may
indicate possible misstatement due to error or fraud, and a critical
assessment of audit evidence" ( IFAC, 2015).
Professional skepticism also includes a critical evaluation of audit
evidence. This includes information that supports and supports the
administrative claim and information that contradicts them. This means
questioning and considering the sufficiency of the audit evidence
obtained in relation to the situation.
Due to the foregoing, this concept becomes crucially important for the
proper development of an audit and its final result, and as the accountant
Samuel Alberto Mantilla indicates in one of his writings, "when auditors
do not properly apply Professional Skepticism, they cannot obtain

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 sufficient and appropriate evidence to support their opinions or they
cannot identify or address situations in which the financial statements are
materially misstatements” (Mantilla S., 2017).

IMPORTANCE:

Professional skepticism plays a fundamental role in auditing, it is an

indispensable part of the auditors' skill set, and professional skepticism is
closely related to professional judgment. They are essential for the
correct performance of the audits and are essential to configure
important contributions and above all in decision making.
The use of professional skepticism helps improve the effectiveness of an
examination procedure and its application, and reduces the possibility
that the examiner may select an inappropriate examination procedure
and apply an appropriate examination procedure incorrectly.
PROFESSIONAL SKEPTICISM REGARDING THE RESPONSIBILITIES
OF THE AUDITOR AGAINST FRAUD:

Given the characteristics of fraud, including the fact that fraud can
include complex and carefully organized schemes to conceal or lead to
collusion, professional audit skepticism is especially important when
considering the risk of fraud material misstatement.
ISA 240 focuses on professional skepticism. Among other words, ISA
240 includes requirements to add something serious and incorrect for
fraud. It is genuine or the condition of the document has been changed,
but this fact has not been disclosed to the auditors.
Defining global responses to responding to the valuable risks of infidelity
from fraud material, as a rule, includes consideration of how the audit
implementation as a whole may reflect professional skepticism,
emphasized.
For example, ISA 240 includes specific examples of how auditing can
reflect more professional skepticism, such as:
 Greater sensitivity in selecting the nature and extent of entity
documentation to be examined in support of material transactions.

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 Greater recognition of the need to corroborate management's
explanations or representations on material issues.
STRATEGIES TO STRENGTHEN PROFESSIONAL SKEPTICISM:

The strategy to strengthen professional skepticism is part of two

moments for public accountants who, during the training process of the
academy and the professionals who have been trained, both with the
vision of audit training.
For the auditor in training, it is important that the strategies currently used
in the academy are strengthened to ensure continuous improvement and
implementation of the training that must be based on techniques that are
based on the development of increasingly better questions for Enabling.
and guarantee of evaluation: the role of the university institutions always
has to concentrate on the specialist to carry out their activities, who
recognize the principles and standards of the invoice that allow them to
identify possible errors or deviations that question their professional
judgment than their skepticism. increases professionally.
All the strategies used with which the development of professional
skepticism in the public auditor has developed its objectives should
always focus on questioning the conflicting evidence and reliability of the
review documents and achieve a report that reflects the sensibly tested
information.

RESPONSIBILITIES OF THE AUDITOR REGARDING PROFESSIONAL

SKEPTICISM:

Auditors have a duty to maintain professional skepticism during the audit

of financial information. For the above reasons, difficulty, time, or cost do
not justify the omission of audit procedures that the auditor deems
necessary or the acceptance of audit evidence that is insufficient to
support the auditor's conclusions.
Auditors must use their auditing knowledge, skills, and abilities to
carefully, honestly, and fairly collect evidence, and to evaluate it fairly
and objectively.

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III. BIBLIOGRAPHIC REFERENCES
 Professional Skepticism: towards a Complete Definition. (2017,

June 29).https://www.auditool.org/blog/auditoria-externa/el-

escepticismo-profesional-hacia-una-definicion-completa

 cipauditores. (nd). Professional skepticism and its

characteristics.https://cipauditoresltda.blogspot.com/2014/10/el-

escepticismo-profesional-y-sus.html

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 Yudelka. (2021). Professional Skepticism.

www.bdo.com.do.https://www.bdo.com.do/es-do/publicaciones/articulos

/el-escepticismo-profesional

 The professional skepticism of the auditor. A vision from public

accounting teachers *. (nd).https://revistas.javeriana.edu.co/files-

articulos/CC/21%20(2020)/151563103017/