This comprehensive course delves into the critical role of professional skepticism in the audit of financial statements. Developed in response to the increased emphasis by regulatory bodies, such as the International Auditing and Assurance Standards Board (IAASB) and the UK Financial Reporting Council (FRC), this course equips auditors with the necessary skills and mindset to approach audits with heightened skepticism. You will learn to cultivate a questioning mindset, recognize indicators of potential misstatement due to error or fraud, and critically assess audit evidence. Through practical examples and case studies, you will discover how to apply professional skepticism at different stages of the audit process, including engagement acceptance, risk assessment, evidence gathering, and opinion formation. Specific applications in fraud detection, accounting estimates, going concern assessments, related party transactions, and regulatory compliance will also be explored.

Join this course and become proficient in professional skepticism, elevating the quality of your audits and instilling public confidence in your work.

Course Key Concepts: Skepticism, Auditing, Mindset, Quality, Fraud, Estimates, Going Concern, Compliance.

Learning Objectives
  • Recognize the importance of professional skepticism as a fundamental aspect of the auditor's mindset in the audit of financial statements.
  • Identify the key factors and indicators that require auditors to apply professional skepticism during engagement acceptance, risk assessment, evidence gathering, and opinion formation stages of an audit.
  • Explore practical techniques and strategies to cultivate a questioning mindset and critically assess audit evidence, enhancing the effectiveness of applied audit procedures.
  • Discover specific applications of professional skepticism in fraud detection, accounting estimates, going concern assessments, related party transactions, and compliance with laws and regulations, enabling auditors to proactively identify potential risks of material misstatement.
Last updated/reviewed: October 11, 2023
5 Reviews (15 ratings)

Reviews

4
Anonymous Author
Explains the critical role of professional skepticism in the audit of financial statements and the standards set by regulatory bodies, such as the International Auditing and Assurance Standards Board (IAASB) and the UK Financial Reporting Council (FRC). Explains why auditors need to have a questioning mindset, recognize indicators of potential misstatement due to error or fraud, and critically assess audit evidence. Good practical examples of how to apply professional skepticism at different stages of the audit process, including engagement acceptance, risk assessment, evidence gathering, and opinion formation.

5
Anonymous Author
Good review of the mindset that auditors need to have when conducting an audit. Good things to think about as well from management's perspective.

5
Anonymous Author
As Specific Applications of Professional Skepticism, inquiry is really strong thing.

5
Anonymous Author
This was a good reminder on how to apply professional skepticism.

4
Anonymous Author
A helpful overview of the role of professional skepticism

Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Practicing Professional Skepticism in the Work Environment2:37
  What is Professional Skepticism15:16
  How does the Auditor Apply Professional Skepticism12:18
  Specific Applications of Professional Skepticism12:46
  The Increasing Importance of Professional Skepticism9:06
CONTINUOUS PLAY
  Practicing Professional Skepticism in the Work Environment52:03
SUPPORTING MATERIAL
  Slides: Practicing Professional Skepticism in the Work EnvironmentPDF
  Practicing Professional Skepticism in the Work Environment Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam